Twitter sued for misleading investors

Twitter

Having failed to meet its “500 million users” target, as set by the microblogging site two years ago, a Twitter shareholder has filed a lawsuit in a US court against the Twitter Inc.

The suit says Twitter has misled its investors about its growth prospects, user counts, and user engagement and caused swings in the company’s stock price in November 2014.

According to the lawsuit, Twitter misled investors as it failed to meet its promise to cap 550 million monthly active users in the intermediate term and more than a billion users in the longer term. The complainant also said the projections were baseless as the company failed to deliver on either of the estimates. Currently twitter claims to have 313 million monthly active users and struggling with flat user base.

The lawsuit seeks justice to those who bought stock between February 6, 2015 to July 28, 2015.

Wefornews Bureau

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