Case Summary:
NYSE
TWTR
Date Filed
09/16/2016
Lead Plaintiff Deadline
11/15/2016
Class Period
2/6/15 - 7/28/15
This is an abbreviated version of Battea’s Twitter securities litigation proprietary research. Full case summaries and economic analyses are available to clients through Battea’s litigation monitoring portal. For more information, or to request a demonstration, contact Battea.
Case Summary
Securities class action on behalf of all persons who purchased or otherwise acquired Twitter common stock between February 6, 2015 and July 28, 2015, pursuant to sections 10(b) & 20(a). To read more about this case, visit Battea’s Twitter news article.
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.
Brief Company Profile
Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to create, distribute, and discover content; and Periscope and Vine, a mobile application that enables user to broadcast and watch video live.
Court: N.D. California
Docket: 16-CV-05314
Judge: Hon. Jon S. Tigar
Plaintiff(s): DORIS SHENWICK
Defendant(s): TWITTER, INC., RICHARD COSTOLO and ANTHONY NOTO
