trending Market Intelligence /marketintelligence/en/news-insights/trending/gouhz8plr5rxnlv3truy6a2 content esgSubNav
In This List

Facebook sued after disappointing earnings report

Blog

Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds

Blog

2022 broadband forecast shifts to market share battle with intense competition

Blog

New RSN streaming plans continue to emerge

Blog

Insight Weekly: Cryptocurrency's growth; green bond market outlook; coal investors' windfall


Facebook sued after disappointing earnings report

A Facebook Inc. shareholder filed a class-action suit against the company, CEO Mark Zuckerberg and CFO David Wehner over allegations that they made misleading statements or failed to disclose the true state of the company's revenues and operating metrics, Reuters reported.

The company and its executives were accused of failing to disclose slowing revenue growth and lower operating margins at the company, as well as declines in active users.

The company had reported second-quarter revenue of $13.23 billion, but the amount was lower than expected, leading to a huge sell-off in the stock that wiped out billions in the company's market value. Facebook's shares plunged nearly 19% to close at $176.26 on July 26.

The suit is seeking an unspecified amount in damages.