Twitter Settles Class-Action Suit for $809.5M

The 2016 complaint involved projections for monthly active users, revenue


Twitter will pay $809.5 million to settle a class-action lawsuit that originated in 2016, accusing the company of misleading its investors about user engagement and growth.

The complaint was based on projections made by Twitter at an event for analysts in 2014, when it said that by 2018, its monthly active users would double to more than 550 million and its revenue would reach $4.6 billion.

The plaintiffs wrote in the complaint, “(Had Twitter) provided investors with complete and accurate information regarding user engagement, investors would have learned that Twitter’s MAU growth—and with it, the company’s ability to increase revenue—had also stalled.”

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in