Legal Nigeria

Twitter to pay $809 mn to settle suit claiming investors were misled

By AFP

FILE – This April 26, 2017, file photo shows the Twitter app icon on a mobile phone in Philadelphia. Twitter on Thursday, May 27, 2021 said it is worried about the safety of its staff in India and called for the government to respect freedom of expression, days after Indian police visited its office in New Delhi over its labeling of a tweet by a governing party spokesman as “manipulated media.” (AP Photo/Matt Rourke, File)

Twitter announced Monday it will pay $809 million to settle a 2016 lawsuit alleging members of the social network’s leadership, including founder Jack Dorsey, provided misleading information to investors about slowing user growth.

The suit claimed the defendants, such as former CEO Dick Costolo, did not disclose the full picture of the company’s state while they sold their personal shares in Twitter.

“The proposed settlement resolves all claims asserted against Twitter and the other named defendants without any admission, concession or finding of any fault, liability or wrongdoing,” the company said in a statement.

Twitter said the final settlement agreement will be subject to court approval, and the company intends to pay in cash later this year.

In July Twitter posted better-than-expected results with gains in revenue, profit and its user base, sparking a rally in shares for the messaging platform.

Net profit was $66 million on revenue that surged to $1.19 billion, beating Wall Street expectations.

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