Facebook is sued after stock plunge 'shocked' market


The $16.8 billion loss of Facebook CEO, Mark Elliot Zuckerberg in one day is nearly the total funds the Nigerian government spent in 2017 fiscal year.

On Thursday, the company's shares plunged 19 percent, which vaporized about $119 billion of its market value.

The lawsuit seeks class-action status and unspecified damages.

Late Wednesday, Facebook warned that its revenue growth will slow down significantly for at least the remainder of the year and that expenses will continue to skyrocket. The drop also affected the net worth of the founder and the largest shareholder of the company - Mark Zuckerberg, which decreased by $15 billion and now stands at $67 billion.

Both the slower growth forecast and heavier spending reflect problems largely of Facebook's own making.

Facebook could lose $151 billion in market capitalization today
Facebook is sued after stock plunge 'shocked' market

This is not the first time the social media company has faced lawsuits this year with the company dealing with the aftermath of the Cambridge Analytica scandal. The complaint also aimed at the company's failure to report falling operating margins and the significant decline in active users.

Mr Zuckerberg had been tied with Mr Warren Buffett as the world's fourth-richest person, but the Berkshire Hathaway Inc chairman's current US$83 billion fortune tops Mr Zuckerberg's US$66 billion, Forbes magazine said.

In after-hours trading, its share price fell as low as 24 per cent. Last week had not been good for one of the most popular social media company, Facebook as it released biggest drop in its share prices in one single session.

The Dow, cushioned by promising developments in trade relations between the United States and the European Union earlier this week, added 1.57 per cent. Intel and Twitter's disappointing results overshadowed data from the Commerce Department showing the U.S. economy grew at a 4.1 per cent annualised rate in the second quarter, its fastest pace in almost four years, on higher consumer spending and farmers rushing soybean shipments to China to beat tariffs.

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Earlier, Modi had visited Rwanda for two days on the first leg of his visit. "He has just secured another big investment, this time from China".