Twitter has settled a class action suit for $809.5 million | Illustration by Alex Castro / The Verge
Twitter said Monday it is proposing an $809.5 million settlement for a 2016 securities class action lawsuit that alleged the company misled investors about its user engagement figures. The complaint alleged violations of the Securities Exchange Act of 1934, according to a news release. Twitter said it expects to use cash on hand to pay the settlement amount likely in its fourth quarter.
The lawsuit alleged that Twitter provided misleading information to investors about growth metrics to make the company appear financially healthier than it was. The complaint points to a 2014 event Twitter held with financial analysts where the company provided “unrealistic” growth projections that called for its monthly active users (MAU) “to double to…
