Investor seeks to attain class action status for lawsuit against Twitter
Twitter Inc. (NYSE:TWTR) has been coming under fire from analysts and investors alike over its stagnant growth numbers for quite a while now. Shareholders have grown increasingly frustrated as Twitter’s failure to address problems has taken an immense toll on its shares. During the past 12 months, the micro blogging site’s shares declined 31.64% while the S&P 500 index jumped 11.33%.
According to Ms. Shenwick’s lawyer, Twitter executives had claimed back in November 2014 that the company’s monthly active users would go beyond 500 million in the mid-term and above a billion in the long term. The plaintiff further alleges that Twitter had made these claims without any concrete base. As of June, Twitter’s monthly active users stood at 313 million. Meanwhile, relatively newer social media platforms such as Snapchat and Instagram have surpassed Twitter in user growth and popularity.
Ms. Shenwick had filled the case in a federal court in San Francisco. She aims to attain class action or group status through which the lawsuit would include all shareholders who purchased Twitter shares between Feb 6, 2015 and July 28, 2015. It is yet unclear how many shares Ms. Shenwick owns. Also at present, it is unclear whether or not any other shareholders have joined the lawsuit.