Moores, who is the club's honorary life president and who still has a seat on the board, said the damage being done to Liverpool was "heartbreaking".
He has also been disgusted by co-owner Tom Hicks' demand for club chief executive Rick Parry to resign less than two days after Liverpool made it into the Champions League semi-finals.
In an interview in the Liverpool Echo, Moores said: "It's heartbreaking. I'm almost lost for words about the damage that's being done to the club at the present time.
"As a fan, and as someone who loves the club, it is totally unacceptable to see this being played out in the public arena.
"When things are played out like they are at present it virtually makes the club a laughing stock."
He added: "This is most certainly not what the club is about. In fact, I can't ever remember, even going back to when I was a supporter as a kid, stuff being played out in public like we have seen in the last six months.
"It is embarrassing and it is not an acceptable way of doing things.
"I've never known anything like it and I'm just absolutely shell-shocked.
"The most heartbreaking thing about all of this is that we were on such a high after the Arsenal game on Tuesday night and then this comes along and completely takes over the great things the players and the manager did.
"Everyone should be going on about how well they performed and how brilliant Rafa (Benitez's) tactics were. I mean, for goodness sake, three Champions League semi-finals in just four years is an unbelievable achievement."