Saudi Press

Saudi Arabia and the world
Saturday, Nov 22, 2025

Twitter To Pay $809 Million To Settle Suit Claiming Investors Were Misled

Twitter To Pay $809 Million To Settle Suit Claiming Investors Were Misled

The suit 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 shares in Twitter.
Twitter announced Monday it will pay $809 million to settle a 2016 lawsuit alleging members of the social network's leadership, including founder Jack Dorsey, provided misleading information to investors about slowing user growth.

The 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 proposed settlement resolves all claims asserted against Twitter and the other named defendants without any admission, concession or finding of any fault, liability or wrongdoing," the company said in a statement.

Twitter said the final settlement agreement will be subject to court approval, and the company intends to pay in cash later this year.

The shareholders claimed board members sold stock at an "artificially inflated" price in their federal lawsuit filed in 2016, the year after Twitter's shares tumbled in value as the company revealed lethargic growth.

In total, according to the subpoena filed in November 2016, the executives sold $281 million worth of shares before Twitter updated its business outlook.

While Dorsey sold $3.6 million worth of shares, co-founder Evan Williams sold $274 million worth.

In April and July 2015, the group revised its forecasts downwards and reported a less strong than expected increase in the number of its active users, which led to the fall in the share price.

Between the April release and the day after the July release, the share price lost a third of its value as a result.

However the companies fortunes have changed since, and in July Twitter posted better-than-expected results with gains in revenue, profit and its user base, sparking a rally in shares for the messaging platform.

Net profit was $66 million on revenue that surged to $1.19 billion, beating Wall Street expectations.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
Saudi Crown Prince’s Washington Visit Aims to Advance Defence, AI and Nuclear Cooperation
Saudi Delegation Strengthens EU–MENA Security Cooperation in Lisbon
Saudi Arabia’s Fossil-Fuel Dominance Powers Global Climate Blockade
Trump Organization Engages Saudi Government-Owned Real-Estate Deal Amid White House Visit
Trump Organization Nears Billion-Dollar Saudi Real Estate Deal Amid White House Diplomacy
Israel Presses U.S. to Tie Saudi F-35 Sale to Formal Normalisation
What We Know Now: Donald Trump’s Financial Ties to Saudi Arabia
Saudi Arabia’s Ambitious Defence Wish List for Washington: From AI Drones to Nuclear Umbrella
Analysis Shows China, Saudi Arabia and UAE among Major Recipients of Climate Finance Loans
Why a Full Saudi–Israel Normalisation Deal Eludes Trump’s Reach
Trump Presses Saudi Arabia to Normalise Ties with Israel as MBS Prepares for White House Visit
US-Saudi Summit Set for November 18 Seeks Defence Pact and Israel Normalisation Momentum
Comcast CEO Brian Roberts Visits Saudi Arabia Amid Potential Bid for Warner Bros. Discovery
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
×