SAN DIEGO, Sept. 16, 2016 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/twitter/) today announced that a
class action has been commenced on behalf of purchasers of Twitter,
Inc. ("Twitter") (NYSE:TWTR) common stock during the period between
February 6, 2015 and July 28, 2015 (the "Class Period"). This
action was filed in the Northern District of California and is captioned Shenwick v.
Twitter, Inc., et al., No. 3:16-cv-5314.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Darren Robbins of
Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can
view a copy of the complaint as filed at
http://www.rgrdlaw.com/cases/twitter/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges Twitter and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Twitter is a global platform for public self-expression
and conversation in real time, where any user can create a Tweet
and any user can follow other users. The Company's main
source of revenue is advertising. Because advertising revenue
is driven by the total number of users on the platform and, equally
as important, the level of engagement of such users, the Company
and analysts have focused closely on metrics measuring total users
and user engagement. Twitter reported two primary user
metrics: Monthly Active Users or "MAUs" (a measure of the total
user base) and timeline views (a measure of user engagement).
Prior to the beginning of the Class Period, Twitter announced that
it would discontinue reporting its primary user engagement metric,
timeline views, stating the reason for the change was that the
metric was an unrepresentative measure of user engagement and no
longer reflective of Twitter's business.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements and/or omitted
adverse information about the Company's business and
prospects. Specifically, the complaint alleges defendants
concealed adverse facts they knew or deliberately disregarded,
including that by early 2015, daily active users ("DAUs") had
replaced the timeline views metric as the primary user engagement
metric tracked internally by Twitter management and that the trend
in user engagement growth (i.e., DAUs) was flat or declining.
In addition, defendants concealed that new product initiatives were
not having a meaningful impact on MAUs or user engagement, that
Twitter's stated "acceleration [in MAU growth]" was the result of
low-quality MAU growth, and that defendants lacked a basis for
their previously issued projections of approximately 20% MAU
growth and 550 million MAUs in the immediate term. As a
result of defendants' false statements and/or omissions, Twitter
stock traded at artificially inflated prices during the Class
Period, reaching a high of $52.87 per
share.
On April 28, 2015, Twitter
released its first quarter 2015 financial results and lowered its
full year 2015 revenue forecast. In addition, the Company
reported that Twitter's MAUs only increased 5% over the prior
quarter. As a result of this news, the price of Twitter stock
fell $9.39 per share, or 18%, to
close at $42.27 per share on
April 28, 2015, and continued its
decline the following day, falling another $3.78 per share, or nearly 9%, to close at
$38.49 per share on volume of over
120 million shares.
Then, on July 28, 2015, after the
market closed, Twitter announced its second quarter 2015 financial
results and reported that Twitter's MAUs had increased by only 2
million users over the prior quarter, representing growth of less
than 1%. As a result of this news, the price of Twitter stock
declined $5.30 per share, or nearly
15%, to close at $31.24 per share on
July 29, 2015 on volume of nearly 93
million shares.
Plaintiff seeks to recover damages on behalf of all purchasers
of Twitter common stock during the Class Period (the
"Class"). The plaintiff is represented by Robbins Geller,
which has extensive experience in prosecuting investor class
actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law
firms advising U.S. and international institutional investors in
securities litigation and portfolio monitoring. With 200
lawyers in 10 offices, Robbins Geller has obtained many of the
largest securities class action recoveries in history and was
ranked first in both total amount recovered for investors and
number of securities class action recoveries in ISS's SCAS Top 50
Report for the last two years. Robbins Geller attorneys have
shaped the law in the areas of securities litigation and
shareholder rights and have recovered tens of billions of dollars
on behalf of the Firm's clients. Robbins Geller not only
secures recoveries for defrauded investors, it also strives to
implement corporate governance reforms, helping to improve the
financial markets for investors worldwide. Please visit
rgrdlaw.com/cases/twitter/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP