NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the District of Delaware on behalf of investors that purchased Twitter, Inc. (NYSE: TWTR) securities between August 6, 2019 and October 23, 2019 (the “Class Period”). Investors have until December 30, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
On August 6, 2019, Twitter publicly disclosed through a tweet that it recently found issues where certain user settings choices designed to target advertising were not working as intended. Twitter stated, “We recently discovered and fixed issues related to your settings choices for the way we deliver personalized ads, and when we share certain data with trusted measurement and advertising partners.”
However, unknown to investors, while Twitter represented that it “fixed” certain issues relating to user choice settings, defendants failed to disclose that the changes implemented to fix these issues adversely affected Twitter’s ability to target advertising, including the targeting of advertising through its Mobile App Promotion product, which caused a material decline in advertising revenue.
On October 24, 2019, the company disclosed its financial results for the quarter ended September 30, 2019 and conducted a conference call with investors. Twitter’s revenue of $823.7 million was over 5% lower than analysts’ estimate of $874.0 million. Weaker-than-expected advertising revenues caused this revenue shortfall.
During the conference call, Defendant Jack Dorsey (“Dorsey”), Twitter’s Chief Executive Officer, disclosed that software defects caused by the changes implemented before the beginning of the Class Period had negatively affected the Company’s third quarter financial results and that the negative effects on advertising revenue would continue through at least the fourth quarter of 2019.
On this news, Twitter’s shares declined from a closing price of $38.83 per share on October 23, 2019, to close at $30.75 per share on October 24, 2019, a decline of $8.10 per share, or over 20%.
The complaint, filed on October 29, 2019, alleges that, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) while Twitter represented that it “fixed” certain issues relating to user choice settings designed to target advertising were not working as intended; (2) the changes implemented to fix these issues adversely affected Twitter’s ability to target advertising, including the targeting of advertising through its Mobile App Promotion (“MAP”) product, which caused a material decline in advertising revenue; and (3) as a result, Twitter's public statements were materially false and misleading at all relevant times.
If you purchased Twitter securities during the Class Period, continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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