It was reportedly the biggest one-day loss in market value by any company in USA stock market history.
Facebook shares were down as much as 19.6 percent at $174.78 in early trading, a decline that would wipe about $124 billion off the company's value - or almost four times the entire market capitalization of Twitter Inc.
So far, three class-action suits have been filed by shareholders claiming that Facebook made false and misleading statements to investors including lack of disclosure around monetization associated with Instagram Stories. Facebook's chief financial officer warned that revenue growth would "decline by high single-digit percentages" for the rest of the year.
The stock initially dropped by 9 percent on Wednesday night due to a slow decrease in revenue recently. Since then, many have been consolidated in the federal court in San Francisco.
Kacouris stated that the marketplace, in one way or another, was "shocked" the moment "the truth" began to surface on Wednesday from the very headquarters of Facebook.
Facebook had the largest-ever loss of value in one day for a USA traded company.
Facebook sued for misleading investors before stock plunge
Thursday's plunge also hit Zuckerberg's bottom-line.
Buffett now ranks third among the world's billionaires, while Zuckerberg is sixth.
Facebook founder, chairman and CEO Mark Zuckerberg, who has started feeling the pressure with lawsuits being filed against him, is also being asked to quit the top post by shareholders.
These quotes and average results from its second quarter caused Facebook's stocks to drop a whopping 19 per cent overnight. The report showed slower-than-expected user number growth and ad sales.
Zuckerberg even noted during a call with analysts that "we're investing so much in security that it will significantly impact our profitability". Technology companies account for six of the 10 biggest companies in the S&P 500 Index. The shares closed up 0.5 per cent.
Zuckerberg, on Wednesday, July 25, 2018 lost $16.8 billion in nearly two hours as the Facebook shares tumbled.More news: West Brom offered encouragement in chase for Newcastle United striker