Facebook Shareholders Sue Company as Stocks Tumble

The Facebook logo on screens at the Nasdaq Market Site in New York's Times Square

It was reportedly the biggest one-day loss in market value by any company in USA stock market history.

Facebook lost Dollars $119 billion in market value as the share price plunged - reportedly the largest single-day loss for any public company in history.

The lawsuit seeks class-action status and unspecified damages.

According to Reuters, Facebook is facing yet another legal issue after its recent stock plunge.

Earlier this year, Facebook was embroiled in the Cambridge Analytica scandal, and took big steps to make the platform more personal and secure immediately after. Questions of data privacy, fake news proliferation and user growth have dogged the company. Many have been consolidated in the federal court in San Francisco.

The loss is the biggest one-day wipeout of individual wealth ever recorded on the ranking, which started tracking the world's biggest fortunes in 2012.

Thursday's plunge also hit Zuckerberg's bottom-line.

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Mr Buffett now ranks third among the world's billionaires, while Mr Zuckerberg is sixth. CEO Mark Zuckerberg saw his net worth fall by roughly $16 billion as a result.

The revelation of a massive data leak in March was another factor that hurt the United States social networking giant.

After a surprisingly weak growth forecast in this week's earnings report, Facebook's stock price dropped 19 percent.

Facebook's user base and revenue grew more slowly than expected in the second quarter of 2018 as the company grappled with privacy issues, sending its stock tumbling after hours.

Shares in Alphabet closed up 0.7%, while those in Apple fell 0.3% and Netflix closed barely higher.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients' accounts, and he said he sees the company as a three-year investment.

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