Motley Rice to lead Twitter securities litigation
Motley Rice has been appointed lead counsel for Twitter Inc., shareholders who allege they were misled about the social media network’s daily user growth during 2015. The case, In re Twitter Inc. Securities Litigation, No. 3:16-cv-05314, is filed in U.S. District Court for the Northern District of California and covers a class period of Feb. 6, 2015 to July 28, 2015.
Twitter executives announced toward the end of 2014 that they expected the company’s number of active users would grow to more than half a billion in the intermediate term, and would reach heights of more than a billion long term. When the public, however, later learned that actual user growth was slower than anticipated, the company’s price per share drastically declined.
U.S. District Judge Jon Tigar of the Northern District of California largely sided with investors on Oct. 16, 2017, allowing claims alleging that Twitter withheld data about daily active users to move ahead into the discovery phase.
“Twitter’s ability to reach its revenue goals is dependent upon user growth,” said securities attorney Gregg Levin who is leading the litigation team. “Investors who acquired Twitter shares during the class period did so under the impression that the company was on the precipice of long-term growth and prosperity. If executives had information to the contrary and failed to share that with investors, then we believe investors should be compensated on account of that non-disclosure.”
Motley Rice has experience representing investors, including recovering $140 million for Barrick Gold shareholders who allege they were misled about the gold mining company’s adherence to environmental regulations regarding its Pascua-Lama mine located along the border of Chile and Argentina. *Prior results do not guarantee a similar outcome.