Shareholder sues Twitter for ‘misleading investors’

New York, Sep 19 (IANS) A Twitter shareholder has filed a lawsuit in a US court against the microblogging site alleging that it misled investors about its prospects for growth, causing swings in the company’s stock price, a media report said.

The suit, filed in a federal court in San Francisco on Friday, alleged that Twitter and its executives misled shareholders in November 2014 when they promised an increase in monthly active users to 550 million in the intermediate term and more than a billion over the longer term, CNET reported on Sunday.

The company’s other optimistic statements about potential growth in February 2015 led its stock price to jump 17 per cent in one day, the complaint noted.

According to the lawsuit, Twitter, which has 313 million monthly users, reported flat user growth during the next quarter, causing a sharp decline in its stock price.

–IANS

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