Facebook chief executive Mark Zuckerberg's fortune took a more than $15 billion (£11.44 billion) hit on Thursday, as the social media company suffered the biggest one-day wipeout in U.S. stock market history a day after executives forecast years of lower profit margins.
Siva Vaidhyanathan, a media studies professor at the University of Virginia and author of the new book, "Antisocial Media: How Facebook Disconnects Us and Undermines Democracy", dismissed the significance of the stock plunge. He also claims the massive plunge stemmed from "federal securities law violations from the defendants".
According to Reuters, shareholder James Kacouris filed a complaint in the Manhattan federal court accusing both Zuckerberg, CFO David Wehner and Facebook of making "misleading statements about or failing to disclose slowing revenue growth, falling operating margins and decline in active users".
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In 1983, scores of people were killed by machete-armed mobs intent on hounding out Muslim immigrants. Addressing the media, Mamata said, "names of people were removed on the basis of surnames also".
Facebook remains a quickly growing company that sees its revenues increase by over 30% yearly, but the news of decelerating growth was enough to discourage some investors.
The lawsuit seeks class-action status and unspecified damages. Furthermore, the growth in the number of daily average users is slowing down as well.
Earlier this year, Facebook was embroiled in the Cambridge Analytica scandal, and took big steps to make the platform more personal and secure immediately after. Many of those lawsuits have been reportedly consolidated in the federal court in San Francisco.
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That development was significant as the U.S. and the European Union together count for more than 50 per cent of the global GDP. Agricultural equipment makers Deere & Co. and Agco both advanced, but General Motors, Ford and Fiat Chrysler all fell.
Facebook founder, chairman and CEO Mark Zuckerberg, who has started feeling the pressure with lawsuits being filed against him, is also being asked to quit the top post by shareholders.
"There's a bit of concern perhaps growing that the bloom's off the rose for these tech stocks, that they are not invincible", said Tim Ghriskey, chief investment strategist at Inverness Counsel in NY. Technology companies account for six of the 10 biggest companies in the S&P 500 Index.
Facebook's user base and revenue grew more slowly than expected in the second quarter of 2018 as the company grappled with privacy issues, sending its stock tumbling after hours.
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The company said in April that monthly active user growth could be " negatively impacted " by the new rules. Twitter's put its EBITDA guidance for the third quarter between $US215 million and $US235 million.
Facebook shares fell another 0.8 percent on Friday, closing at $174.89 on the Nasdaq.