Twitter posts $537 mn net loss over lawsuit payout

Twitter posted a net loss due to a lawsuit settlement
Twitter posted a net loss due to a lawsuit settlement.

Twitter said Tuesday it had posted a $537 million net loss in the third quarter after settling a lawsuit alleging investors were misled about slowing user growth.

Despite revenue rising sharply with the help of robust ad sales, Twitter still posted an of $743 million, fuelled by the more than $800 million settlement.

The 2016 federal suit filed by shareholders claimed the defendants, such as former CEO Dick Costolo, did not disclose the full picture of the company's state while they sold their personal stock in Twitter.

The shareholders claimed board members sold stock at an "artificially inflated" price. The suit was filed the year after Twitter's shares tumbled in value as the company revealed lethargic growth.

Despite the lawsuit costs, Twitter said third quarter revenue hit $1.3 billion, an increase of 37 percent over this time last year.

The company noted that advertising reached $1.14 billion, which is 41 percent above 2020's third quarter results.


Explore further

Twitter to pay $809 mn to settle suit claiming investors were misled

© 2021 AFP

Citation: Twitter posts $537 mn net loss over lawsuit payout (2021, October 26) retrieved 9 December 2021 from https://techxplore.com/news/2021-10-twitter-mn-net-loss-lawsuit.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
4 shares

Feedback to editors