Facebook is sued after stock plunge 'shocked' market

referring to Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company. He said the 19 percent plunge in Facebook shares the next day stemmed from federal securities law violations by the defendants. Shareholders often sue companies in the United States after unexpected stock price declines, especially if the loss of wealth is large. Many have been consolidated in the federal court in San Francisco. The case is Kacouris v Facebook Inc et al, U.S. District Court, Southern District of New York, No.

Facebook stock plunges 20% after CFO warns sales growth will slow

Facebook's stock plunged 20% Thursday morning after the company said it expects revenue growth to slow as it "puts privacy first" and rethinks its product experiences. Wehner said a focus on "putting privacy first" in its product development process will likely "have some impact on revenue growth." That represents a slowdown from the 41 million daily users it added in the same quarter last year. Facebook had 279 million daily users there in the second quarter, down from 282 million in the prior quarter. But any benefits found there could come at the expense of ad sales growth.

Facebook insiders sold more stock than usual in the second quarter

as mentioned in The company reported second-quarter results Wednesday that missed Wall Street expectations and sent the stock tumbling after the market closed. Ahead of earnings, Zuckerberg sold hundreds of thousands of shares at roughly $30 above where they were trading Thursday. Chief Operating Officer Sheryl Sandberg sold $11.5 million worth, while Christopher Cox, chief product officer, sold $2 million worth. "With the stock rising, the smart thing to do would have been to sell the stock before it took eventual earning hit." Selling Facebook stock wouldn't make much of a dent, especially when most of it is not going in his own pocket.

collected by :Roy Mark