Twitter will pay over $800 million to settle a class action suit

guest · Sep 20, 2021

Twitter will pay over $800 million to settle a class action suit
The complaint alleges the company misled investors about its user engagement numbers
September 20, 2021
https://www.theverge.com/2021/9/20/...securities-monthly-users-investors-engagement

Twitter said Monday it is proposing an $809.5 million settlement for a 2016 securities class action lawsuit that alleged the company misled investors about its user engagement figures. The complaint alleged violations of the Securities Exchange Act of 1934, according to a news release. Twitter said it expects to use cash on hand to pay the settlement amount likely in its fourth quarter.

The lawsuit alleged that Twitter provided misleading information to investors about growth metrics to make the company appear financially healthier than it was. The complaint points to a 2014 event Twitter held with financial analysts where the company provided “unrealistic” growth projections that called for its monthly active users (MAU) “to double to over 550 million users and for revenue to grow by $4.6 billion by 2018.”
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It also caught the attention of the Securities and Exchange Commission, which asked Twitter in April 2015 —after the company made its annual securities filing— if it planned to provide “alternative metrics” to try to “explain trends in user engagement and advertising services.”

According to a report from the Wall Street Journal at the time, Twitter told the SEC it had started to disclose how often users took an action in response to an ad, and how much its advertisers paid for that information. The SEC dropped its inquiry after this reply, the Journal reported.
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EASTER · Sep 20, 2021

That looks and sounds exciting.

henryg · Sep 20, 2021

EASTER said: ↑

That looks and sounds exciting.
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Especially for Jack Dorsey…

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