Twitter pays more than $ 800 million to settle a class action lawsuit | Engadget

has $ 809.5 million to settle a class action lawsuit filed by shareholders in 2016. Investors claim that Twitter is covering the slowdown in growth of the company while executives, including former CEO Dick Costolo, and co-founders Evan Williams and Jack Dorsey (the current CEO) sold shares “for hundreds of millions of dollars in profits from within. ”

The claimants Twitter tracked the daily active users (DAU) as the most important measure of engagement in early 2015, but it still reported monthly active user figures. The DAU survey indicated that involvement was declining or remaining flat, according to the lawsuit.

Twitter says those who have yet to approve a court “resolve all claims brought against Twitter and the other said defendants, without any acknowledgment, concession or finding of any guilt, liability or offense by the company or defendant.” Twitter and all the persons named as defendants in the case deny that they were convicted. The lawsuit accused Twitter and its executives of violating the 1934 Stock Exchange Act.

The company plans to use cash on hand for the settlement. The amount is expected to be paid by the end of the year.

In the fourth quarter of 2018, Twitter started reporting Average Revenue Earning Daily Active Users (mDAU). It said it is the only engagement measure it will disclose to investors in the future, in part because it is a more accurate reflection of how it makes money from users.

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