Twitter, Inc. Class Action Lawsuit
- Company Name
- Twitter, Inc.
- Stock Symbol
- Motion Deadline
- December 29, 2019
- Northern District of California
On October 29, 2019, the Twitter, Inc. class action lawsuit was filed charging Twitter and certain of its officers with violations of the Securities Exchange Act of 1934. The Twitter class action lawsuit was commenced in the Northern District of California on behalf of purchasers of Twitter common stock between August 6, 2019 and October 23, 2019 (the “Class Period”) and is captioned Hasan v. Twitter, Inc., No. 3:19-cv-07149.
Twitter describes itself as a global platform for public self-expression and conversation in real time.
The Twitter class action lawsuit alleges that on August 6, 2019, Twitter publicly disclosed through a tweet that it had recently found issues with certain user settings choices designed to target advertising that were not working as intended. Twitter represented that it had “recently discovered and fixed issues related to your settings choices for the way [Twitter] deliver[s] personalized ads, and when [it] share[s] certain data with trusted measurement and advertising partners.” However, unknown to investors, while Twitter represented that it had “fixed” certain issues relating to user choice settings, defendants failed to disclose that the changes implemented to fix these issues adversely affected Twitter’s ability to target advertising, including the targeting of advertising through its Mobile App Promotion (“MAP”) product, which caused a material decline in advertising revenue. As a result of this information being withheld from the market, the price of Twitter stock was artificially inflated to more than $45 per share during the Class Period.
Then on October 24, 2019, before the market opened, Twitter disclosed its financial results for the quarter ended September 30, 2019 and conducted a conference call with investors. During the conference call, Twitter’s Chief Executive Officer, Jack Dorsey, disclosed that Twitter “had some missteps and bugs in our [MAP] ads . . . . We discovered and took steps to remediate bugs that largely affected our legacy [MAP] product. These bugs affected our ability to target ads and share data with measurement and partners. We also discovered that certain personalization and data sightings were not operating as expected.” On this news, the price of Twitter stock declined from a close of $38.83 per share on October 23, 2019, to a close of $30.75 per share on October 24, 2019, a decline of $8.08 per share, or more than 20%.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Twitter common stock during the Class Period to seek appointment as lead plaintiff in the Twitter class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Twitter class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Twitter class action lawsuit. An investor’s ability to share in any potential future recovery of the Twitter class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Twitter class action lawsuit or have questions concerning your rights regarding the Twitter class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Twitter class action lawsuit must be filed with the court no later than December 29, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.