Twitter Out A Billion Bucks After Allegedly Deliberately Misleading Investors
It’s costing Twitter US$809.5 million to settle a case out of court alleging they deliberately misled investors about how many people used the social media platform.
With the case on the edge of heading to trial, Twitter agreed to the settlement, which is $1.1 billion in Australian money, if it resolved all claims without admission or finding any wrongdoing, fault or liability.
The consolidated class action stemmed from claims about their user engagement in 2015, and jury selection was originally slated for next week.
The case centred around shareholder claims alleging there was misleading information about monthly active users and timeline views.
Twitter continue to deny any wrongdoing, but say they will pay up to settle claims alleging securities law violations. They reveal they will fund the massive amount using cash on hand.