Facebook stock plunges after data fallout Video

Transcript for Facebook stock plunges after data fallout

Their stock plunging. The company losing billions as it faces fallout. Our chief business correspondent Rebecca Jarvis spoke with the top Facebook executive and she joins us now outside of Facebook — at Facebook’s headquarters outside San Francisco. Good morning, Rebecca. Reporter: Good morning, Michael. Yes, that’s right. These are the first public comments by a Facebook executive in the wake of those claims that 50 million Facebook users unknowingly had their information mishandled by a political consultancy with close ties to the trump campaign. We are unbelievably outraged and beyond disturbed at the allegations that data was misused or that our policies have been violated. Reporter: Facebook’s vice president of marketing in an interview at the shop talk promising a forensic audit and possible legal action against Cambridge analytica. This is something Facebook learned about in 2015. It impacted 50 million users. Why wasn’t more information disclosed earlier on? We suspended them at the time. We asked them to reassure us that all of that data had really been essentially destroyed and they certified all the parties involved certified that was the case. We recently have come to find out that that may not be the case. Reporter: Cambridge analytica says the information was deleted. Facebook’s stock rocked by the scandal shares cratering nearly 7% Monday. Wiping out approximately $40 billion in value since Friday. Congress now calling for tougher regulations, democratic senator Amy klobuchar tweeting it’s clear these platforms can’t police themselves calling on Facebook founder and CEO mark Zuckerberg to testify before senate judiciary. That stock plunge also shaved billions off the wealth of mark Zuckerberg, the Facebook founder and CEO sold some of his stock earlier because of a predetermined plan to raise money for his charity. That saved him about $40 million, Michael. Wow. A lot of money there, Rebecca. But what about the 50 million Facebook users. What are they going to tell them? Reporter: This is something that I asked Facebook about and they said that those notifications if they were to go out they’re still uncertain whether or not that would even happen, they will know more as a result of this audit they’re conducting right now, Michael. All right, thank you so much, Rebecca.

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