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Lawsuits, WhatsApp And Zuckerberg: The Latest On Facebook

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Lawsuits, WhatsApp And Zuckerberg: The Latest On Facebook
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Facebook, Inc. (NASDAQ: FB) was trading lower by more than 1.5 percent early Wednesday morning. The stock has been crushed this week amid reports of a potential data breach. Here is a summary of the latest developments.

Cambridge Analytica Suspends CEO

Cambridge Analytica, the data analytic firm that is front and center in the data controversy, suspended its CEO Alexander Nix on Tuesday. The decision to suspend the executive follows a series of investigative reporting in which he was recorded saying he used seduction and bribery tactics to help influence foreign elections.

Investors Sue

A Facebook shareholder Fan Yuan filed a lawsuit in federal court in San Francisco against Facebook, CNN reported. The lawsuit includes an undisclosed number of investors who bought the stock between Feb. 3 and March 19. The lawsuit alleges Facebook "made materially false and misleading statements" relating to its policies. As such, the investors believe the company's "wrongful acts and omissions" has resulted in "signification losses and damages."

#DeleteFacebook

WhatsApp co-founders Jan Koum and Brian Acton sold their chat app to Facebook in 2014 for $16 billion. Both co-founders accepted jobs at Facebook, but Acton quit this year to work on his own foundation. On Tuesday, Acton Tweeted, "It is time. #deletefacebook" -- a likely call for a mass boycott of Facebook's social media platforms.

Zuckerberg To Speak?

Facebook CEO Mark Zuckerberg is expected to speak to his employees on Friday during a previously scheduled meeting, Bloomberg reported. However, an Axios report suggested he will speak out within the next 24 hours with the objective of rebuilding trust. Zuckerberg is believed to be working with product engineers about what can be done to make the platform more secure and he is waiting to say "something meaningful rather than just rushing out," Axios said.

Related Links:

Analysis: The Facebook Data Controversy, And Why Wall Street Could Take It Harder Than Washington

Credit Suisse: Facebook Investors Should Expect Continued Risk After Cambridge Analytica Scandal

Posted-In: Brian Acton Cambridge Analytica Fan YuanNews Legal Top Stories Tech Media Best of Benzinga

 

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