Facebook shareholder sues after $120 billion, 1-day stock drop

A Facebook shareholder filed a lawsuit against the company and its CEO Mark Zuckerberg July 27 over misleading statements that did not prepare shareholders for a $120 billion single-day drop in value, according to Reuters.

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In his lawsuit, James Kacouris alleges Facebook officials did not disclose stagnant revenue growth, declining operating margins and reductions in active users, which left shareholders shocked when the company’s stock dropped 19 percent July 26 after a disappointing earnings statement.

The class-action lawsuit seeks unspecified damages.

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