Usa, Twitter Pledges for Over 800 Million to End a Class Action
The lawsuit was filed in 2015 by some shareholders who contested the information given by the company regarding the number of users.
Eight hundred million dollars and the trial is avoided. This is what Twitter has proposed, a plea agreement that seeks to put an end to a class action filed in 2015. The American company is accused of misleading investors regarding user data. Shareholders contest information regarding the number of monthly active users and user interactions with the platform.
The agreement can stop the process that was about to begin. The jury selection would be on Monday, but Oakland Judge Jon Tigar had postponed it to the end of November. Former CEO Richard Costolo and former CFO Anthony Noto continue to deny any responsibility. In any case, the plea agreement must be approved by the Californian judge to be operational. The class action only affects those who bought Twitter stock from February 6, 2015 to July 28, 2015.
In a statement, Twitter said the deal “resolves all complaints” of wrongdoing and denies “any wrongdoing or any other improper action”. Once the court clears the deal, payment will be in cash, likely in the third quarter of 2021. At Nasdaq, the San Francisco-based company’s stock is down sharply, like all major tech stocks, due to the selloff. global started with the Evergrande crisis.