Mark Zuckerberg, CEO of Facebook, is being sued along with Moran Stanley over the weak Facebook stock. This came today after shareholders believed they had been “mislead” over the potential growth of the company. This comes after an initial $38 stock, to a decline to a $31 stock at the moment, and a $16 billion initial public offering.
The value of Facebook common stock has declined substantially and plaintiffs and the class have sustained damages as a result
Facebook stock clearly could have been underestimated, and many investors are thinking along the same lines at the moment. Facebook shares have fell about 18.4 % from their initial $38 IPO price in the first three days of trading. The value of the stock in the IPO has reduced by more than $2.9 billion.