Mark Zuckerberg sued: Facebook boss faces lawsuit over charges he knew share price would drop | Mail Online

Mark Zuckerberg sued: Facebook boss faces lawsuit over charges he knew share price would drop | Mail Online:

'via Blog this'Others have coined a new word to describe their financial state after Zuckerberg's social media giant went public -- 'zucked.'

TMZ reports the new lawsuit, the second in two weeks, names Zuckerberg, along with Morgan Stanley, JPMorgan and Goldman Sachs.

As evidence of Zuckerberg's knowledge, the plaintiffs cite the Facebook founder's disclosure filings that lists 30.2 million shares of the company he sold right after the stock went public. 

The sale, at $38 a share, netted him $1.13 billion. If he sold the shares today, they would be worth $800 million. 

Other big-time Facebook investors, who got in on the company before the IPO, raked in hundreds of millions of dollars from dumping off their stock at $38 a share. 

The new lawsuit is similar to ones filed within days of the IPO, alleging that top executives knew their stock was going to tank after initial trading. 

Those suits say Facebook warned the banks behind its IPO that the company would fall short of its expected revenue for the second quarter. 

The banks knew this information, even as Facebook was selling its $16 billion stock offering to the public, the plaintiffs allege. 

Instead of coming clean with the damaging news, according to the lawsuits banks like Morgan Stanley shared it only with big investors -- allowing them to stay away from the stock until the price dropped to reflect the lower earnings.

Facebook has previously strongly denied the allegations. Morgan Stanley has said it did nothing during the Facebook IPO that it wouldn't have done for any other company's stock offering.