Twitter to settle class-action lawsuit for $810 million
Twitter on Monday said it agreed to pay $809.5 million to settle a class-action lawsuit that alleged the tech giant misled investors about user metrics.
Why it matters: Tech companies have long faced criticism for the accuracy of the metrics they report publicly. Facebook has faced similar lawsuits.
Details: The settlement is coming in response to a lawsuit filed in 2016 by investors in the U.S. District Court for the Northern District of California.
- The lawsuit alleges that Twitter "deliberately misled investors about user engagement in 2015," per the Wall Street Journal.
- In a statement, Twitter said that the settlement "resolves all claims" of wrongdoing and that the tech giant continues "to deny any wrongdoing or any other improper actions."
- Twitter said in a government filing that it intends to pay the settlement using cash on hand. It will be paid in the fourth quarter of this year, but the company will take down an impairment charge for it in the third quarter.