Twitter To Pay $809.5 Million To Settle 2016 Lawsuit Over Growth Projections

Twitter on Monday said it has agreed to pay $809.5 million to settle a class action lawsuit that accused the social network of violating securities laws by misleading investors about its prospects for growth. CNET reports: The settlement stems from a 2016 lawsuit that alleged Twitter and its executives misled shareholders in November 2014 about user growth, promising an increase in monthly active users to 550 million in the "intermediate" term and more than a billion "over the longer term." But Twitter's user growth remained flat, causing steep declines in its stock price, according to the lawsuit. Twitter stopped reporting monthly active users in April 2019 (at last count it reported 330 million). The company now looks at daily users who see ads as its key metric. In July, Twitter reported that its mDAU, or monetized daily active users, grew to 206 million for the quarter that ended in June. The user growth helped the company, which makes most of its revenue from ads, post a 74% increase in quarterly revenue, to $1.19 billion. The settlement agreement, which doesn't include any admission of wrongdoing by Twitter, is subject to court approval.

It's no wonder nobody has acquired Twitter yet

[kriston]

It's no wonder nobody has attempted to acquire Twitter yet.

$809 Mil?

[sconeu]

Jack Dorsey: Let me rummage around in my sofa cushions for a minute... Here ya go.

Safe harbor

[spinitch]

How any can promise such lofty predictions without basis for assumptions then the gullible who rely on it. However there are SEC rules and better governed organizations provide a lengthy safe harbor caveat we could be wrong. More money for the lawyers, but should serve as a warning to both investors and management.

Shareholder Lawsuits

[ytene]

There will almost inevitably be a set of circumstances in which it is necessary, not merely appropriate, for shareholders to be able to sue a company in which they are a part-owner. There is always the risk of negligence or deliberate malfeasance by officers of the company that can only be addressed in this way.

But the circumstances of this particular case look to be more than a little dubious.

Any public-traded company in the US will file 10-Q’s with the SEC, documents that include forward-looki

Using "big lie" funds, Trump could buy this

[seniorcoder]

Partly using contributions he has acquired from people who believe his "Big Lie", Turmp could acquire Twitter and regain his megaphone.
Then again, he would need a lot more lies to the gullible to acquire enough money for this.