SAN FRANCISCO (Legal Newsline) — A Twitter shareholder has initiated a lawsuit against the company alleging it misled investors regarding software defects that allowed targeted advertising, which caused a drop in revenue and stock decline.
Khan Hasan filed a complaint Oct. 29 in the U.S. District Court for the Northern District of California against Twitter Inc., CEO Jack Dorsey and CFO Ned Segal, citing the Securities Exchange Act.
According to the complaint, in August, Twitter had announced issues with its user setting choices designed to target advertising. Hasan claims Twitter represented that it fixed the issues but "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."
The suit states in October before the market opened, Twitter disclosed in a conference call that its revenue was lower due to weaker advertising revenues and its share prices dropped. The plaintiff alleges he was damaged as a result.
Hasan seeks damages, a trial by jury and other just relief. He is represented by Laurence King and Mario Choi of The Kaplan Fox & Kilsheimer Law Firm LLP in San Francisco; and Robert Kaplan, Frederic Fox, Donald Hall and Jeffery Campisi of Kaplan Fox & Kilsheimer in New York City.
U.S. District Court for the Northern District of California case number 19-CV-07149