Mark Zuckerberg is being accused by a Meta investor of $2.5 billion worth of insider trading. A civil lawsuit is currently being launched directly at Meta's (previously Facebook) very own CEO.
Mark Zuckerberg is Being Sued by Hugues Gervant
Zuckerberg is being accused of insider trading crimes by Hugues Gervant, who filed "derivative litigation" while accusing Meta's CEO of over $2.5 billion through insider sales before and during particular scandals that started to shake the social media giant as per Law360.
This type of lawsuit is a form of legal case that a shareholder brings to the court. In this particular case, the complaint was directly filed to the federal court of California.
Lawsuit Includes Period Before Facebook's Name Change
The "angry" investor is currently hoping to hold Mark Zuckerberg's CEO accountable for his supposed crimes. The claim also includes that the directors and executives of the company are also legally responsible for Facebook's recent drop in stock value.
The lawsuit also includes a time period before the initial Facebook name was then switched to Meta. With that, it also focuses directly on time in 2021 when the company was met with multiple whistleblower accusations and claims that Instagram and Facebook were detrimental to children's health.
Mark Zuckerberg Accused of Selling $2.5 Billion Shares Based on Insider Info
The filing also notes that Zuckerberg had engaged directly in insider trading, which violated the federal law itself. The accusation states that he sold $2.5 billion shares between the period of April of 2021 and October of this year based on insider information.
According to the story by The Sun, the legal complaint notes that as the highest officer of Facebook and the trusted company director, Mark Zuckerberg conducted minimal oversight when it came to the platform's engagement within schemes to make misleading and false statements and engage in platform content misconduct.
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What the Civil Lawsuit Said Mark Zuckerberg Did
Other allegations include consciously disregarding the duties of his position, which is to monitor these types of controls when it comes to reporting and engaging in the particular schemes. Zuckerberg was also said to have "consciously disregarded his duties" when it came to how the company's corporate assets were protected.
The suit notes that Zuckerberg's motive when it came to facilitating and participating in the particular fraud is shown by the insider sales that happened before the fraud's exposure. In addition, a recent podcast with Lex Fridman, the Meta CEO, included thoughts about life and death.
The CEO of Meta already has plans for creating his own virtual worlds and even revealed other larger plans for his metaverse.
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Written by Urian B.
