September 21, 2021

Twitter has agreed to pay $809.5 million to settle a class-action lawsuit by shareholders accusing the social media giant of misleading investors about the frequency of use of its platform.

The settlement resolved a case that barely averted going to trial. Jury selection was scheduled for Monday, but at a September 17 hearing U.S. District Judge Jon Tigar in Oakland, Calif., postponed it until later this year.

Twitter denied any wrongdoing, though it agreed to the deal that requires Tigar’s consent.

Shareholders sued Twitter in September 2016, claiming it artificially inflated its share price by misleading them about users’ participation.

The formal complaint also mentions that Twitter stopped reporting Timeline Views at the end of 2014 and did not disclose the stagnant or declining user engagement by reporting vague user data.

The class action involved investors who bought the shares between February 6, 2015 and July 28, 2015.

For more information, view the original story from Reuters.