Monday, September 20, 2021
After years of fighting
Twitter compares with investors
Twitter wants to pay 809.5 million dollars to investors. The background are allegations that the US company did not tell the truth when it came to its user numbers. Now a comparison should end the conflict. However, there is still no admission of guilt.
The US company Twitter has reached a settlement with investors after years of dispute over misleading information on the number of its users. Twitter wants to pay $ 809.5 million (690 million euros), the company said. A court still has to approve this.
The investors had already sued in 2016. Senior managers at Twitter, including founder Jack Dorsey and then boss Dick Costolo, did not reveal the full truth about slower growth in user numbers when selling their own Twitter shares in 2015, according to the allegation. Because of this, the share price had temporarily fallen back then. The desired comparison regulates all lawsuits and is not an admission of guilt, stressed Twitter. After legal approval, the money should flow this year.
Twitter presented surprisingly good business figures in July. Second quarter earnings were $ 66 million and sales were $ 1.19 billion. The number of daily active users who can be shown advertisements, which is important for Twitter, rose to 206 million people. That was an increase of eleven percent compared to the same period last year.