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Twitter agreed to pay $809.5 million to shareholders accusing it of misleading investors about some of its performance.
The company said it did not admit any wrongdoing. Twitter intends to pay this amount in the fourth quarter using its available cash.
The class action lawsuit alleges that Twitter misled shareholders about two important metrics for the service: the number of monthly active users and the frequency of users logging into the service.
According to the plaintiffs, the service concealed the slowdown in these metrics from investors in 2015, while some top executives at the company, including then-CEO Dick Costolo, sold their shares and made "hundreds of millions of dollars in insider profits".
source: reuters.com
The company said it did not admit any wrongdoing. Twitter intends to pay this amount in the fourth quarter using its available cash.
The class action lawsuit alleges that Twitter misled shareholders about two important metrics for the service: the number of monthly active users and the frequency of users logging into the service.
According to the plaintiffs, the service concealed the slowdown in these metrics from investors in 2015, while some top executives at the company, including then-CEO Dick Costolo, sold their shares and made "hundreds of millions of dollars in insider profits".
source: reuters.com
