Twitter enters $810m settlement in long-running investor action

Twitter has entered into a binding $809.5m settlement over its long-running securities class action, it announced on Monday, bringing an end to allegations it deceived investors.

The social media giant was accused of knowingly misleading investors around the daily and monthly engagement of its users in 2015 - claims the company has consistently denied.

US District Judge Jon Tigar had paved the way for a full trial last year, in deciding that a reasonable jury could find that in hiding falls in key user measurements, it deceived investors.

“The proposed settlement resolves all claims asserted against Twitter and the other named defendants without any admission, concession or finding of any fault, liability or wrongdoing by the company or any defendant,” the company said in a statement on Monday.

“Twitter and the individual defendants continue to deny any wrongdoing or any other improper actions.”

Under the terms of the proposed settlement, Twitter would pay $809.5m for claims alleging violations of the Securities Exchange Act.

The company said it would use cash on hand to pay the settlement amount, which was expected to be paid in the fourth quarter.

“The company expects to record a charge for the settlement during the third quarter of 2021.” Twitter added.

It said the final settlement agreement remained subject to approval by the court.