NEW ORLEANS--(BUSINESS WIRE)--
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Twitter, Inc. (NYSE: TWTR).
Since early 2015, the Company has misrepresented its performance to shareholders by publicly ignoring vital user engagement metrics measuring its financial health and profitability while boosting expectations. An April 27, 2015 WSJ article focused on its decision to stop reporting “Timeline Views,” noting that “the [Timeline Views] metric helped analysts measure the health and future potential of the company… analysts could track Twitter’s ability to make money from user engagement.” However, the Company had begun internally utilizing an alternative primary metric, DAU (Daily Active Users), but failed to disclose that fact and misrepresented the true user engagement trends. When the Company finally revealed the truth regarding “very low” user growth in Q2 2015, expected to continue into the foreseeable future, the value of its stock plummeted.
Thereafter, Twitter and certain of its executives were sued in securities class action lawsuits for failing to disclose material information, violating federal securities laws. The Company’s motion to dismiss was recently denied, allowing the consolidated cases to proceed. A shareholder derivative lawsuit was also filed against the Company’s current and former executives and is pending.
KSF’s investigation focuses on whether Twitter’s officers and/or directors breached their fiduciary duties to Twitter’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Twitter shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn ([email protected]).
About Kahn Swick & Foti, LLC
KSF, whose partners include Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
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