Twitter has reached an $809 million class action lawsuit settlement to resolve claims that the company "Provided misleading user-engagement info to investors".
A lawsuit filed in 2016 alleged that Jack Dorsey and former CEO Dick Costolo, in addition to board member Evan Williams, hid information about the social media company's slowing user growth while they sold their personal stock holdings.
Among the allegations were that the company didn't reveal that to investors that its DAU figures showed that user engagement was flat or declining at the time.
The binding agreement, which is subject to certain conditions, including court approval of a final settlement agreement, requires the Company to pay $809.5 million for claims alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The binding agreement does not, and the final settlement agreement will not, include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by the Company or any defendant.
The Company expects to record a charge for the settlement during the third quarter of 2021.
While Twitter will be able to easily pay the settlement with its over $4 billion on hand, the $800 million amount isn't immaterial.
Tuesday, September 21, 2021
Twitter Pays $800 Million To Settle Lawsuit Alleging Company Provided Misleading User Metrics To Investors
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment