Twitter Inc said Monday it will pay $ 809.5 million to settle a lawsuit that the company misled investors about growing its user base and the number of users interacting with its platform.
The San Francisco-based company said the proposed deal, which has yet to be approved by a judge, resolves all complaints against it without Twitter admitting any wrongdoing.
In the original 2016 lawsuit filed by Twitter shareholder Doris Chenwick, the company’s executives “deliberately provided inaccurate public statements regarding these estimates and did not disclose inside information about them, resulting in a rise in the share price, which is came down after revealing the truth. ” on user engagement.
The company has indicated that it plans to pay the deal in the fourth quarter of 2021.
According to the lawsuit, Twitter executives said in 2014 that the monthly user base media of the site should increase in significantly to “more than 550 million” of users in the medium term and to more than “one billion” in the long term.
In 2019, Twitter stopped publishing monthly user numbers. At the last census in the spring of that year, the number had reached 330 million. Now, Twitter only announces the daily user numbers.
In 2017, Twitter announced that it mistakenly overestimated the number of users per month because it included users via third-party apps, which it shouldn’t have done.
Shares of Twitter fell $ 2.50, or 4%, from $ 59.95 in trading on Monday afternoon.
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