Twitter Will Pay Over $800 Million to Settle a Class Action Suit
upstart writes:
Twitter will pay over $800 million to settle a class action suit:
Twitter has agreed to pay $809.5 million to settle a class action suit filed by shareholders in 2016. Investors alleged that Twitter masked the company's slowing growth while executives including former CEO Dick Costolo and co-founders Evan Williams and Jack Dorsey (the current CEO) sold stock for hundreds of millions of dollars in insider profits."
The plaintiffs said Twitter was tracking daily active users (DAU) as the key metric for engagement in early 2015, but it was still reporting monthly active user figures. The DAU measurement indicated engagement was dropping or staying flat, according to the lawsuit.
[...] The company plans to use cash on hand for the settlement. It's expected to pay the sum by the end of the year.
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