“Facebook founder Mark Zuckerberg’s net worth is now at its lowest since his company’s May 17 initial public offering, as the company’s shares hit a new low on Thursday. Facebook shares sagged 6.3 percent as it put millions more up for sale; the day’s drop personally cost Zuckerberg $600 million. His net worth is now down to $10.2 billion, according to Bloomberg, while other Facebook founders have also lost big. Chris Hughes, the new owner of The New Republic, lost $400 million since the IPO, Dustin Moskovitz $2.4 billion, and Eduardo Saverin, $960 million.”
OUCH. Those co-founders have each lost nearly half of their net worth.
If someone at Facebook did whisper in the ear of the underwriters’ analysts about the earnings, and those analysts then used this material, non-public information for the basis of rethinking their estimates, and the clients of the banks then altered their orders for Facebook shares while in possession of this information, we have the makings of an insider trading case.Facebook Forecast Scandal’s Big Question: Insider Trading? - CNBC (via felixsalmon)