Investors have filed a lawsuit against Mark Zuckerberg, CEO and founder of the social networking site Facebook, claiming that he knew the organisation had been overpriced before its flotation on the 12 May.
The company debuted on the U.S. stock market for $100 billion. The company’s shares soon later declined in value, generating complaints from numerous company investors, who claim that Zuckerberg knew the stock was overvalued, as Facebook had not generated enough income from advertising to warrant selling shares at $38. Allegedly, by withholding information, the company’s CEO was able to make billion dollars, taking advantage of the firm’s investors.
The popularity of sites like Facebook cannot be denied. Founded by Zuckerberg in 2004, Facebook now has over 900 million users. These figures make the site the largest social networks in the world.
The site is also receiving renewed media attention for its plan to allow individuals under 13 to join the site. This controversial move has received criticism from a number of commentators, among fears that the lifting of the ban will expose children to a number of dangers, including child pornography and cyber-bullying.