PAY UP
Twitter will pay $809.5 million to settle a class-action lawsuit alleging the social media company misled investors, the company announced Monday.
As part of the settlement deal, Twitter and individually named defendants, including CEO Jack Dorsey and former CEO Richard Costolo, will continue to deny any wrongdoing or any other improper actions.
The complaint points to a November 2014 “pep rally with analysts” Twitter held to “buoy investor confidence.” The complaint alleges Twitter provided “unrealistic growth projections” at the event to calm investors’ skepticism.
The lawsuit alleges Twitter embarked in a “shell game” to “conceal the true state of the key metrics,” such as user engagement, when sharing analytics with investors.