Twitter is paying $ 809.5 million to resolve the 2016 growth forecast lawsuit

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Angela Lang / CNET

Twitter said Monday it had agreed to pay $ 809.5 million

The settlement comes from a lawsuit in 2016 that alleged Twitter and its executives misled shareholders about user growth in November 2014, promising an increase in monthly active users to 550 million in the “medium” term and to more than a billion “long term”. However, Twitter’s user growth remained flat, which led to a sharp drop in its share price, according to the lawsuit.

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Twitter no longer report monthly active users in April 2019 (330 million at the last count). The company is now researching daily users who see ads as the most important metric. In July, Twitter reported that its mDAU, or Monetized Daily Active Users, rose to 206 million for the quarter ended June. User growth helped the company, which generates most of its revenue from ads, increase its revenue by 74% to $ 1.19 billion for the quarter.

The settlement agreement, which does not include an admission of misconduct by Twitter, requires judicial approval.

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