Twitter Stock Inflation

Continually hunting for news of emerging and newly filed class action litigation

Request Information on This Case

SETTLED

Twitter Stock Inflation

FILING DEADLINES:

09/16/2016

icon-filing-deadline

CASE NUMBER:

16-CV-05314

CLASS PERIOD:

February 6, 2015 — July 28, 2015

TOTAL SETTLEMENT FUND:

$0.00

  • icon-settling-defendants

    SETTLING DEFENDANTS

    Twitter Inc., Richard Costolo, Anthony Noto

  • icon-eligible-class

    ELIGIBLE CLASS

    All persons who purchased or otherwise acquired Twitter common stock between February 6, 2015 and July 28, 2015.

  • icon-eligible-instruments

    ELIGIBLE INSTRUMENTS

    Twitter common stock.

  • icon-allegations

    Preliminary Allegations

    The complaint alleges that the Individual Defendants made, or caused to be made, false statements that caused the price of Twitter common stock to be artificially inflated during the Class Period. Specifically, Defendants concealed adverse facts they knew or deliberately disregarded, including the following:

    (a) By early 2015, daily active users (“DAUs”) had replaced the timeline views metric as the primary user engagement metric tracked internally by Twitter management.
    (b) By early 2015, the trend in user engagement growth (i.e., DAUs) was flat or declining.
    (c) New product initiatives were not having a meaningful impact on MAUs or user engagement.
    (d) The “acceleration [in MAU growth]” was the result of low-quality MAU growth (in which new users were not as engaged as existing users).
    (e) Defendants lacked a basis for their previously issued projections of approximately 20% MAU growth and 550 million MAUs in the immediate term.

  • icon-case-summary

    Case Summary

    The complaint alleges that the Individual Defendants made, or caused to be made, false statements that caused the price of Twitter common stock to be artificially inflated during the Class Period.

Case Updates

Apr 28, 2015, 1:49p  
News:
“Twitter Stock Tanks on Revenue Miss, Weak Guidance”
The stock also dipped due to lower-than-expected guidance from Twitter on both Q2 and
full-year revenue projections. The company is projecting $470 million to $485 million in
revenue next quarter and $2.17 billion to $2.27 billion on the year; analysts were looking
for roughly $538 million and $2.37 billion respectively.

Jul. 28, 2015, 6:47 PM (Business Insider)
Disclosure:
“TWITTER GOT KILLED TUESDAY NIGHT”
The sell-off happened after Twitter finance chief Anthony Noto told investors not to
expect any meaningful growth in the size of Twitter’s audience for a “considerable”
amount of time.

Next Steps

Contact your Battea Customer Service Representative directly.

  • icon-company-profile

    BRIEF COMPANY PROFILE

    Name: Twitter, Inc.
    Country: United States
    Industry: Internet Communications

View More Settled Cases