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Mark Zuckerberg Sued For Unloading Facebook Stock

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Mark Zuckerberg Sued For Unloading Facebook Stock
[ Social Media]

Mark Zuckerberg and mega-social media site Facebook have both been in the news quite a bit recently, between the company’s disastrous IPO and the many, many people who are unhappy with it. Now, a class-action lawsuit is being brought against Zuckerberg by some of those unhappy investors, who claim the mogul unloaded a huge amount of stock on inside information that it wasn’t worth its estimated value.

Zuckerberg is no stranger to legal battles; last year he was sued over a Facebook page that garnered a wave of backlash from the Jewish community, and just a week after the company went public, they were sued for hiding “unfavorable growth forecasts” before the IPO. Oh, and there was that whole Winklevoss scandal.

This lawsuit, however, could get big very quickly. It claims that JP Morgan, Goldman Sachs, and Morgan Stanley all tipped off only the investors with the largest stake in the company about the serious undervalue of the stock well before the IPO, leaving everyone else who invested their hard earned dollars in the dust. As of Monday morning, shares had fallen to around $26.00 apiece, far below the initial $38.00 projected value.

Former Wall Street analyst Henry Blodget spoke up on behalf of investors, calling the insider trading allegations “absurd and unfair.” He goes on to say that the SEC should change their rules about such information being shared, asserting that every investor has the right to know what’s going on with the IPO.

“This is an absurd and unfair practice,” he said. “The estimates themselves are material information–the consensus of smart, well-trained analysts who have worked with the company’s management to develop realistic forecasts. Most investors don’t even know that these estimates exist, let alone that they’re whispered verbally to only a handful of big investors. All potential investors should have easy access to these estimates, as well as to any logic underlying them. The SEC needs to change the rules here.”

While the exact amount of Zuckerberg’s sold shares isn’t known, rumors put it around a billion dollars, and that adds up to a lot of angry stockholders. There have been accusations that Zuckerberg himself is to blame for the disastrous IPO on the grounds that he is an egomaniac who allowed the company to offer inflated projections in order to justify Facebook’s $100 billion valuation. That, in turn, leads many people back to the idea that Facebook will be struggling in the years to come and may fall off or disappear completely within the next five years.

Speculation on Facebook’s staying power has been a topic of conversation practically since the company was founded, especially since there are so many competing social media sites. And while Facebook has grown exponentially with the help of advertising and incorporating their brand into other sites via login links, they have sadly neglected their mobile app. That, says Ironfire Capital’s Eric Jackson, could prove to be their downfall.

Facebook has acknowledged the glitch in their Matrix, even stating in their IPO filing that if users continue to choose mobile devices over PCs for their Facebooking needs, it will negatively affect the company because they can’t keep up with demands. That acknowledgement may not bode well for the company in light of this lawsuit, and it begs the question of whether or not insider trading was indeed an issue right before the IPO. Did Zuckerberg use that information for his own gain and bail while he still could? What does he know that we don’t?

The fact that the company’s head honcho took off on a honeymoon right after the stocks began to tank isn’t sitting well with investors, either. Since he’s been traveling with his new bride, Zuckerberg hasn’t had time to comment on this latest news and what it might mean for his company, but it looks like this case could get nasty pretty quickly as the very people who are supporting Facebook are demanding answers and accountability from its owner.

RT @AskKissy LOL. Mark got over.. Aren’t you glad you couldn’t afford to buy the stock? http://t.co/mmDLvsoT
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When are people going to realize Zuckerberg is a horrible person? “Facebook, Mark Zuckerberg, Banks Sued Over IPO” http://t.co/wJIwuKEN
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I guess someone is having a more stressful day than me…Mark Zuckerberg Sued For Unloading Facebook Stock #WebProNews http://t.co/LyD1A4Ip
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Mark Zuckerberg Sued For Unloading Facebook Stock
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  • http://webpronews.com johnjrambo

    Mark Zuckerberg is shady little shit stain and its believed that he in fact, is a long time homosexual.

    • Wanda Oakes

      Who cares if he is homosexual???

      • Porky Pigz

        Who cares if a “shady little s***stain?

        • http://about.me/wildboy2008 WILDBOY2008

          Finally the tower is coming down. took long enough :)

        • Sniper

          that’s ok, because his wife looks like a carpet-munching dyke

          • Marcko

            Ha! Ha! That’s hilarious! I guess she can afford to buy enough flannel shirts so she never has to wear the same one twice!

      • Stuart Pid

        Other homosexuals care.

        • Son of Liberty

          Who cares what homosexuals think?

          • Josh Fredrick

            Dont be an idiot

        • John

          other little shady s***stains care

        • john wood

          Like he said…..who cares what homosexuals think!

    • Numb

      Your statement only proves what an unintelligent and truly ignorant person you are.

      And yes Zuckerberg is a piece of shit, but honestly these effing morons who dove into the Facebook shares like it was going to take them to fame and fortune should’ve done a little more investigating…i could tell from a mile away that Facebook is a dying social media site.

      • Blackadder

        If you stayed away from Facebook because you could tell from a mile away that it was a dying social media, then you’re still a sucker waiting to get scammed.

        Whether or not Facebook is or was dying is irrelevant. The fact that its valuation was $100 billion dollars is all you need to know.

        Investors invest money to see a return on their dollar. You’d like to turn $100 into $1,000 or $100,000 into $1 million. Where did anyone think a $100 billion was going to go? Did the they honestly expect it to grow to a $1 trillion company. That’s absurd, yet that is what it would have taken for investors to see a real turnaround on their investment.

        Investors make money by coming in on the ground floor. This IPO started at the penthouse – there was no place to go but down.

        Facebook may be dying in your eyes, but if that is your focus when evaluating these things, then you’ll eventually get stung, too.

        • david

          Very well put…FACEBOOK captured our media obsession…yet so did myspace….Zuckerburg got rich and took a few to the top with him…Look at the whole story…its reported founding ..then members fleeing to not pay taxes….people want to blame others for their mistakes…had all investers gotten great returns it wouldn’t even be anything to talk about..If i had a ton of money on the line and someone told me Hey this may not workout for you…I would dump it to…so would every one else…PERSONAL PRESERVATION..

        • Jim

          Well put. The share price had no where to go but down…

        • Jesse

          I understand what you’re saying. I personally didn’t invest in Facebook, although I’ve been monitoring it closely. You stated a true fact that Facebook has nowhere to go except for down due to the extremely high IPO.
          However, Facebook’s source of income is what truly determines the value of the stock at the end of the day. The biggest source of money (70%) is advertising. That may have made Zuckerberg rich, but it is not a reliable source, especially if Facebook and it’s advertising is dying in the eyes of the users, and the mobile apps are expanding. Money off of advertising worked for Google, but due to the nature of the website, it is different.

          Fact is, Facebook puts out no product what-so-ever. Now there are talks (which have been pretty much confirmed– for now) of Facebook making there own mobile phone. I can say right now, that it is ultimately going to fail, mostly due to the huge variety of other phones on the market (Apple’s monopoly drives many people to use iPhones, and Androids take another huge piece of the market).

          It is not really good looking that the CEO is on vacation, and especially that he hasn’t spoken to his investors or the general public. However, I don’t think that anybody is justified in suing him. It’s the stock market, which is really risky. These investors who have lost their money don’t want to take responsibility for their actions. It is human nature to want to blame somebody else rather than accepting fault in what they have done.

    • Wane

      I agree..with him being a lil mess of a human it the assumption he is gay not so much.

    • minmar12

      So what?

    • papadude

      The stock will settle in at around $9.00 to 15.00 range. I just could not see much upside for revenue growth. Social media
      everyone is trying to get in all the big players will be competing for some of facebooks users nad business.

    • http://www.empower-network125.com Nathan Smith

      Damn I don’t know why people Hate Zuckerberg so much, ever since they went public he’s been losing money, Well I guess the Every Successful person Needs “HATERS” Right.

      • Owen Jacobs

        “ever since they went public he’s been losing money”

        No he hasn’t. Don’t confuse Mark Zuckerberg with Facebook.

        Rather Mark has become very very rich by selling part of his ownership in Facebook, and will continue to be very very rich whatever happens to Facebook.

  • d rap

    nice homophobia rambo—take that comment down–it is disgraceful..

    • skeeter

      He is a little fag boy genius, who has been running all of you for years. Go discuss this article on Facebook. Terds

    • http://www.ShepherdSlayer.com/ ShepherdSlayer

      There’s always a socialist panzy assuming that someone else scared of them and trying to censor anyone that they disagree with. Go home, ‘dik rap’.

  • drdolittle1990

    People, it’s written clearly on the wall … READ his last name!!!

    • clueless

      I don’t get it? What does is last name have to with it?

  • joe

    goldman sachs did something shady? nooooooo! stolen idea, shady practices, what do you expect?

    • Susan DeFrank

      that’s exactly what went on in my mind when deciding if I wanted to buy into Facebook. No thanks, the idea was stolen, it now appears that the investors have been hoodwinked. Guess I called it correctly.

  • halfeattenleg

    $38.00 for one share of Facebook…SIGN ME UP! words to regret.

    • Dennis

      How do I buy a share in the facebook stock? I’m not familiar in buying stock? How is it done and were do I go to buy it and how?

      • Frank Lin

        Hi:

        Financial company.

      • Nick

        sharebuilder.com…. completely free to sign up

  • Don Kliewer

    Some stock start slow out of the gates. It will go up, and then those who didn’t have the patience, will be sorry that they didn’t wait for results.

    • halfeattenleg

      and THATS the reason only the BIG SPENDERS were told to wait. If everyone has the info, no stock gets sold, hence, no money is made.

    • Michael

      Not as sorry that they didn’t wait a couple of weeks to get in.

  • nekia

    This guy stays in the news more than anyone I know!!!!

    • http://OMGyouWereNOTpayingAttention.com Sadi

      Obama’s right there along side. LOL

    • MOBADTHANGOOD

      Hey, he’s not a Kardashian.

      • http://OMGyouWereNOTpayingAttention.com Sadi

        LOL MOBAD

  • http://OMGyouWereNOTpayingAttention.com Sadi

    WOW – how the tides turn! People were clammoring for those stocks! I personally know several financial advisors that said NO WAY will I sell you those right out of the gate, the price is too high! You’re paying PREMIUM at that price! Don’t do it! And what did people do? Go and buy it anyways and now their all mad? Suck it up investors! You asked for it, you got it! Of course when the value of the stock goes up, the original stock owners are going to cash in some stock and take some gains. That’s how the stock market game is played. Are you stupid? That is why if you know anything you don’t buy right out of the gate! You wait until the original stock holders are done selling their stocks and taking their gains and the new buyers are settled and then look at where the price is at.

    If you don’t know that common sense thinking, then why bother investing?

    • JStraw

      Why would the stock go up?

    • Pitter

      I agree. There has to be a business plan that will promote growth and revenue. Their information seems to suggest that there will be no competition in the market.I am sure that the competition is looking on ways to use the Facebook business model, improve it and go after their market. The time to have got in would have been as a private investor before the IPO

    • Stephanie

      Exactly right…Warren Buffet said the same.

  • Joe

    Well, anyone stupid enough to invest into a company that doesn’t have any products or any potential of growth, is a fool. And a fool and his money are soon parted. They need to quit bitchin’, because Stocks are risky investments in the first place. Waaaaa, waaaaa…I lost some money. They probably have more than they need in the first place. Greed is what got our country in this mess…

    • Thomas

      “Greed will be the downfall of this country”

  • Huk Hogan

    I knew he couldn’t hide his jewishness for long. It was only a matter of time! Take that you greedy, hook-nosed Jew!

    • Stan

      Huk, With all the wide range of comments, seems like you win the award for being the racial bigot on the site. A few other are in the running, but you are in a class by yourself.

      • Huk Hogan

        Awww, gee thanks, Stan. Your comments about me are so meaningful to me, that I just have to give you the weekly award for biggest douchebag.

        • Mr T

          Huk… you are an asshair.

      • I call myself “hulk hogan” ….

        Funny how Hulk ues a fake name! Your such a tool! The fact your using “Hulk Hogan” says a lot you pencil d!@% faggot!….. just an fyi… I hve nothing against gay people, but do think that word is an insult and just felt like calling “Hulk Hogan” that.

  • MOBADTHANGOOD

    So all you stupid sheep went out and bought stock and are losing your butts but you want to blame it on Zuckerberg.

    You are saying and blaming him because you were to stupid to ask the same questions you are accusing him of now.

    BAAAA! BAAAAA!
    WHAT A BUNCH OF LOSERS.
    YOU ARE GETTING EXACTLY WHAT YOU DESERVE.

  • plumberman

    SOPHISTICATED GAMBLING! DID SOMEONE PUT A GUN TO THEIR HEADS TO BUY? GREED DID!

  • Michael

    I hope they pin that arrogant, unethical little creep to the wall.

  • RennieTanner

    I don’t get it. Why would ANYONE trust Mark Zuckerberg in the first place? Anyone who knows ANYTHING about how Facebook started, should know that Zuckerberg is a liar, a cheat, and has absolutely no honor or loyalty to friends, or to anybody. He stole the idea for Facebook from friends who trusted him, he lied to his friends, he cheated early business partners and employees out of stock, and in addition, the current “personality” he has in the media, is a total PR creation…. in other words, he’s a phony to boot !!!

    • van

      lol that’s funny..I was going to ask is there anybody who wants to sell some stock..? I’d buy..:)business is business and I don’t think the winklevoss were friends..lol

  • dgh1965

    Hey, they invested in the stock market, it’s a risk! Not every IPO jumps up in price. Wait awhile, and chances are good it’s going to climb. I can’t see that this law suit having any traction. Honestly I’m tired of the press and all the whiners about this one stock.

    • daniel

      yeah but how do u feel about not everyone getting the same info and so a few profited tremendously while others lost. it’s about insiders trading. and for the ones that made a killing based on insider’s info, where do you think that money comes from? and if they HAVE the money, who are the HAVE NOTS?

      • http://OMGyouWereNOTpayingAttention.com Sadi

        It’s not true dgh, it’s speculation and accusations from investors that aren’t happy. Zuckerburg has to pay taxes for all that money he made this year so ONE, he must sell and pay not only federal taxes but also state taxes. TWO, selling when your shares are high is the name of the game. Why wouldn’t he cash in? This is his payday, the one he’s been working for all these years. THREE, He doesn’t have nor does anyone else have a crystal ball that tells anyone what the shares are worth… they are only worth what the investors make it worth. That right there is the hole in their lawsuit.

  • Bill Elliott

    I predict Facebook will shrink in size by as much as 40% in the next few years. I think people are getting tired of social networking

  • http://www.examiner.com/finance-examiner-in-national/kenneth-schortgen-jr Kenneth Schortgen Jr

    Actually Amanda, you failed to look into the WHOLE story.

    Zuckerberg stated more than a month before the IPO took place that once it goes public, he would HAVE to sell off more than $1 billion worth of stock just to pay the tax liability he would instantly accrue.

    It wasn’t a surprise he sold, and this lawsuit won’t hold water. He disclosed his intentions long before the stock went public.

  • Kafka

    I wouldn’t touch that stock. In the internet age, it’s best to get the feeling of the young people my age.(25) The fact is, Facebook is old news. People are moving beyond it to having Tumblr pages for example. I see Fa(k)ebook going way down. People are leaving pages up but going to them less and less. I was one of the first 50,000 people who had a page as a teenager in college, now I might look at it once a month if that. Zuckerberg saw the handwriting on the wall, I’m sure. I could be wrong because it may evolve. If not, it will go the way of Myspace and basically disappear.

  • http://www.LAokay.com Steve G

    Everybody is going to look back at the IPO as the day Facebook started to die. They’re never going to meet revenue projections or expectations and that is going to cause the stock price to fall even more. As a private company they were doing ok, but as a public company the pressure will be on to boost earnings. Remember when Facebook said it made money to build services, not build services to make money? That concept doesn’t work very well for a public company. Facebook has to now build services to make money or watch their stock price drop even further. Going public changes a company, and I don’t think Mark understood that. He’s just now learning that lesson. Class dismissed!

    • jbux

      right on Steveo…! :>)

      • Kafka

        Truth. Fakebook is overwhelmingly a web entity. Overnight it could disappear and it is going to fade. There is very little tangible about it. Terrible investment.

        • minmar12

          Actually a lot of the big advertisers think it’s worth the money and game sellers, et al. What do you think keeps it going??? Posts????

          Just because something isn’t tangible doesn’t mean it’s not worth anything. Life Insurance isn’t tangible.

          • http://www.robertkennzington.com bobby

            Life insurance is absolutely tangible. It’s a VERY tangible CONTRACT – that is ongoing and reliable RECEIVABLE with SPECIFIC FUNDING that is GUARANTEED (& insured) to be paid on a specific date -the date of the insured’s death (which is also SURE to occur!)

  • Sam

    Funny how the greedy investors run to buy a stock and then lose money and try to sue! What a bunch or crying butt wipes! Heck I buy stock and had no interest in some company that has no material value to me.
    I think the losers need to suck it up and take their losses like a true investor! I have lost money before buying stocks and it was my choice to buy it. Next time maybe they research the true value of a stock instead of taking it down the throat like a big pill at it’s speculated value! If I remember correct I think there were already fluctuations in the opening IPO price before it ever started. That, to me is a tell-tell sign something not right! They did not even know what it was worth, so, the investors set the pace when the gates opened. All they had to do was offer what they believed it was worth, not what they were told. LOL!

  • jbux

    I’m going to laugh at all the people who dump FB stock now…driving up the available pool of stock, thinning out the fat and day traders…which will drive up demand and loyalty to FB over a period of time…which translates into earnings for investors with longevity in mind….lol! It’s all a ploy. You have NO control. The control is already in the hands of the top stock owners…and however they want to manipulate the headlines….

  • http://OMGyouWereNOTpayingAttention.com Sadi

    I’m amazed at how much rasicm is still abundant.
    His nationality has nothing to do with what other people choose to invest in!
    GROW UP people!

  • P.T. Barnum

    Good luck with that SUCKERS !

  • ufoolish

    still, all you tards that invested and lost money are going to log onto facebook 25 times a day.

  • Jen

    Can’t feel real sorry for anyone who lost money on this. IF they are taken the greed out of their hearts and considered for 2 minutes what they were buying into, they would not have purchased it. Greed is a son of a beeatch. Never had a Facebook account, will never have one.

  • russell rodems

    the little snot has screwed everyone he has done buisness with friends family collage associates the country by bugging out instead of paying taxes in the country that made him rich what a scab on a pigs ass boycott facebook

    • http://OMGyouWereNOTpayingAttention.com Sadi

      that wasn’t Zuckerburg

      • minmar12

        That wasn’t Zuckerburg. Get the story straight if you’re going to post.

  • Gail Renne

    Stocks are nothing but a rip off. If is always the rich protecting the rich and forget the little guy. Those big investment firms only watch out for their rich customers and through the little guy under the bus.

  • robert

    THe public invested in a company that didnt have a product what did they expect no pitty from me

    let them all lose there shirts

    and why would you trust a kid with millions or billions

    watch out he can sell all you info to some 3rd world country now because you gave it to him

    • Kris

      I think people should be angry and sue. If you ask your bank for the funds to expand your business – the bank has the legal right to expect you are not purposely misrepresenting your company. Investors are the bank.
      Sure there are risks, but the company was not properly represented to the majority of investors. Think if you bought a car that was tested to 40 mpg – but they only told buyers of two or more cars that it really only gets 20 mpg —mpg is not guarenteed right — would you feel the car was misrepresented ?

  • katie

    pffffff…bahahahahahaha…oh that is too funny. Finally, those rich a$$holes are getting what they deserve..absolutely nothing.

  • allen

    Everyone says the stock has ALWAYS been worth $7 – $8 US..that’s it! nuff said.

  • Amanda

    Everyone hate on him because he’s 33427346786 richer than you’ll ever be. Greedy people wanted to jump in because the company has so much money. Not his fault that he wants money like everybody else does, he’s just been more successful at aquiring it. If you’re good at something, or successful, someone will always disapprove. I bet some of these people complaining have a facebook..what point are you proving?

  • Qwerty Q

    Anyone actually try to sell this stock short?

  • Charles Cicco

    Damn fools! When will they ever learn? They fell for another rip off.

    • Citi Sam

      Thank you Charles Cisco. This is exactly a true capitalism or Ripping Off the little people who doesn’t have much.
      Facebook went up to $45 within few minutes for insiders before it start plunging.
      Citibank did the same thing last year when they Split from below $10 to $45. Citibank is now what, $24.00?
      What about the Elephant, GM? They went Bankrupt, Little people jumped in hoping that they will be able to make some money when they come out of it. They came back to claim that they are different from the company that owned GM during Bankruptcy. They emerged with a new IPO of $32. The poor hopeful little ones jumped in again with their hard earned money to boost it up to $38 only to make the millioneers richer because GM is now at $21.11.
      Capitalism is created for the rich; all others are there to Service, Suppport and Worship them for ever.
      God Bless America

  • gompy

    Suckers. You all were hoping to get rich quick and it back fired. Now you are compplaning. Any “investor” with some common sense would have and should have known that the IPO price was much to high.
    Banks make money, no matter what and you lose. Wake up and smell the roses.
    I wrote the same thing already weeks before the IPO came out. You burn your fingers and now live with it. Stupid is stupid does.

  • Zuckerbergbaumwitzstein

    No question, people who bought this stock should lose every dime they invested. People really think stock in a company with no physical product is a good investment? Pathetic.

  • Scott Nehring

    OMG !! Listen to this mindless babble … We’re doomed I tell ya … Freaking Doomed !!

    • Sharon

      You’re not kidding. The intelligence level on these blogs is frightening!

  • ED

    Well it true he is a Homo and everyone that bought FB stock is taking it in As.s

  • Itoldyouso

    laughing so hard till i puke x infinity

  • spacenurse

    of course he sold. It was pay day

  • quarterback9

    i bought facebook stock,but i sold them 1 week later{with a loss}oh well,i also bet on sports i win and i loose betting on stocks is the same as betting on sports {i must admit i’m better at sports alot better}live and learn

  • ED

    look at the picture up above can you tell me that he not gay.
    he is a scu bag he knew his company was not worth 38.00per share but
    because he scu bag he sold about 1 billion worth of shares and know the stock is taking a dump.

  • RW

    GO GUYS…..FRY MARTHA, BUT CHANGE THE SEC RULES FOR THE BOYS.

  • http://WWW.TVB.COM WINSTON

    DAMM OVER THE YEARS FACEBOOK FRIENDS REQUEST STILL BLOCK JUST BLOCK YOUR PERSONAL MAN I HATE THIS SHIT BLOCK

  • SDW

    Send him to jail like Martha Stewart.

  • fully_loaded

    they shoot horses don’t they?

    • Michelle

      Seems the minimum pushiment for j@ck@sses

  • yourstruly

    Didn’t Martha Stewart do the same with her stock? She went to prison, so shouldn’t that happen to this guy? I think so…

  • Andrea

    No matter what this poor dude does, he will always be hated by someone. The daily price of success. But everyone should be getting the clue by now – Facebook is worthless! Always has been.

  • http://about.me/wildboy2008 WILDBOY2008

    lets bring back myspace !!

  • Carl

    If the people sueing were dumb enough to buy facebook stock in the first place they got what they deserved

  • John Deiter

    When will people who invested in Facebook realize that they got f*cked by all those greedy f*cks on Wall Street, especially the bankers who new everything that was going on.

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