Twitter has unveiled a binding agreement to settle a class-action lawsuit, under which the social network will pay investors তথ্য 809.5 million to settle claims that provide information on misleading engagements.
The original lawsuit, filed by a Twitter shareholder in 2016, Dorsey and others, including former CEO Dick Costolo and board member Evan Williams, withheld information about the slow growth of Twitter users when they sold their personal stock holdings for “millions of dollars in internal profits.” The allegation alleges that the company was tracking daily active users (DAUs) as a primary indicator of Twitter user engagement in early 2015 but did not disclose it to investors at the time. According to the lawsuit, Twitter’s DAU statistics show that user engagement is flattening or decreasing.
Twitter noted in an 8K filing on Monday that the final settlement agreement “would not include or admit any admissions, exemptions, or any faults, liabilities, or faults of the company or any defendant.” The agreement still requires court approval; The case is being heard in U.S. District Court for the Northern District of California.
The company said it expects to use cash to pay for the settlement, which is expected to be paid in the fourth quarter of 2021.