Mark Zuckerberg Sued For Unloading Facebook Stock

It claims that JP Morgan, Goldman Sachs, and Morgan Stanley all tipped off only the investors with the largest stake in the company about the serious undervalue of the stock well before the IPO, leaving everyone else who invested their hard-earned dollars in the dust. As of Monday morning, shares had fallen to around $26.00 apiece, far below the initial $38.00 projected value.

Former Wall Street analyst Henry Blodget spoke up on behalf of investors, calling the insider trading allegations “absurd and unfair.” He goes on to say that the SEC should change their rules about such information being shared, asserting that every investor has the right t

o know what’s going on with the IPO.

“This is an absurd and unfair practice,” he said. “The estimates themselves are material information–the consensus of smart, well-trained analysts who have worked with the company’s management to develop realistic forecasts. Most investors don’t even know that these estimates exist, let alone that they’re whispered verbally to only a handful of big investors. All potential investors should have easy access to these estimates, as well as to any logic underlying them. The SEC needs to change the rules here.”

While the exact amount of Zu

ckerberg’s sold shares isn’t known, rumors put it around a billion dollars, and that adds up to a lot of angry stockholders. There have been accusations that Zuckerberg himself is to blame for the disastrous IPO on the grounds that he is an egomaniac who allowed the company to offer inflated projections in order to justify Facebook’s $100 billion valuation.

source webpronews.com