Twitter Agrees $809.5m Settlement with Shareholders

Twitter announced last week that they have agreed to settle the class action suit launched against them in 2016 for $809.5m.

Twitter had the following to say in their official press release:

The proposed settlement resolves all claims asserted against Twitter and the other named defendants without any admission, concession or finding of any fault, liability or wrongdoing by the Company or any defendant. Twitter and the individual defendants continue to deny any wrongdoing or any other improper actions.

Under the terms of the proposed settlement, Twitter will pay $809.5 million for claims alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

You can read the full press release here

The lawsuit was filled in 2016 initially by shareholder Doris Shenwich who alleged that executives of the company misled potential and existing investors about the extent and pace of the social media giants growth prospects. In 2016 Twitter's share price fell nearly 14% on the release of poor Q2 results.

Twitter recently suffered another 15% fall in share prices after again failing to meet analysts predictions on growth and revenue.

This marks the latest in a string on multi-million dollar settlements relating to shareholder actions and continues to highlight the increasing cost and frequency of such claims.