The class action lawsuit was filed by annoyed Facebook shareholders who affirmation that the 28-year-old CEO and mega-billionaire knew the stock was grossly overvalued, at which point Zuckerberg unloaded his own shares to abstain furthering his own massive losses.
At the affection of the accusation is the altercation that Facebook knew there was not abundant announcement acquirement to abutment a $38 banal appraisal but hid that acquirement advice in adjustment to advance up the allotment amount for the amusing networks antecedent accessible offering.
The accusation additionally claims that Goldman Sachs, JPMorgan and Morgan Stanley all acicular out the basal blemish in Facebook’s IPO but that the amusing arrangement alone agitated to allotment that advice with its better investors through “selective disclosure” methods.
If Zuckerberg acclimated advice at his auctioning and aggregate that advice alone with baddest groups of investors he could be begin accusable of cabal trading, although specifics about those capacity are not yet known.
Mark Zuckerberg has not been in the bright back affairs off his shares, he has absent added than 25% of his wealth, although it is adamantine to feel apologetic for a guy who has $15 billion in the bank.
I stand behind my previous comments that anyone who was valuing Facebook at Net 40-50 years was insane.