Twitter announced on September 20 (local time) that it had reached an agreement to pay $895 million for class-action charges stemming from shareholders in 2016.
According to the plaintiff’s appeal, Twitter first reported monthly active users in 2015 as an indicator of user growth, but has since followed daily active users as an important metric. DAU was checking to see if user growth was slowing, but executives including former CEO Dick Costolo, co-founders and current CEOs Jack Dorsey and Evan Williams were selling shares. That it was hidden without announcing it for a while.
In addition, Twitter will start reporting the average daily active user mDAU on behalf of the monthly active users as an indicator in the Q4 2018 financial statements.
In addition to the Settlement, Twitter is not liable for torts other than the Settlement, stating that Twitter and other named defendants under this Settlement cannot admit, yield, or authorize any claims made against Twitter and any other named defendants with respect to any negligent liability or tort by the Company or the Defendants. continues to deny A settlement will eventually require court approval, but Twitter expects to pay the settlement later this year using cash on hand. Related information can be found here.