Social network company Twitter Inc. (TWTR) says that it will part with $809.5 million to settle a 2016 shareholder class action lawsuit in which it was accused of deceiving investors how frequently individuals use its social media platform.
Back in 2016, shareholders of the company sued Twitter after discovering the company artificially inflated the price of its shares by giving misleading information to them on how often people use its social media platform.
According to the lawsuit, Twitter stopped reporting timeline reviews at the end of 2104 in efforts to hide stagnating or decreasing number of user engagements to the investors and entire public.
The company’s chief executive officers then, Richard Costolo, together with chief financial officer, Anthony Noto, have always denied any wrongdoing in the matter.
The shareholders say they came to realize the truth after Costolo left the company in June 2015. The class action lawsuit covers investors who bought Twitter shares from February 6, 2015 to July 28, 2015.