Senator Richard Blumenthal: Zuckerberg, Facebook Execs Could Be Called Before Congress (FB, SOCL)
Facebook (NASDAQ:FB) CEO Mark Zuckerberg may still be in Italy with his new bride, but when it comes to his company, the honeymoon is over. Not only has his personal fortune shrunk by nearly one-third in less than two weeks since the disastrous Facebook debut, but a large chunk of the billionaire’s mental bandwidth will be focused on depositions, shareholder lawsuits, and regulatory probes, as well as a Congressional investigation.
“The concern is that there was selective disclosure—that the smaller investor failed to be given the information that larger investors were,” says Senator Richard Blumenthal in the attached video. While the SEC and other federal authorities are already looking into what transpired before, during, and after the IPO, the first-term Democrat from Connecticut says Congress needs to determine whether the present laws are adequate, as well as, who knew what, when they knew it, and how they found out.
“Mark Zuckerberg might be a potential witness,” Blumenthal says. “But more likely the financial executives at Facebook who had direct responsibility for informing the underwriters may be much more relevant witnesses.”
See the full “Breakout” interview below: