NEW YORK, Sept. 20, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Twitter, Inc. (“Twitter” or the “Company”) (NYSE: TWTR ) of the November 15, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Twitter common stock between February 6, 2015 and July 28, 2015 (the “Class Period”). The case, Doris Shenwick v. Twitter, Inc. et al , No. 3:16-cv-05314 was filed on September 16, 2016, and has been assigned to Judge Jon Steven Tigar.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing materially false and/or misleading statements and/or failed to disclose: 1) that by early 2015 daily active users replaced the timeline views metric as the primary user engagement metric tracked by Twitter management; 2) the trend in user engagement growth was declining; 3) new product initiatives were not having a significant impact on monthly active users (MAUs) or user engagement; 4) Twitter stated “acceleration” was the result of low-quality MAU growth; 5) and Twitter lacked a basis for their projections of approximately 20% MAU growth and 550 million MAUs in the immediate term.
Specifically, on April 28, 2015, Twitter released its first quarter 2015 financial results and its projections for the second quarter of 2015. The Company reported non-GAAP income of $47 million, or $0.07 non-GAAP EPS, and revenue of $436 million for its first quarter 2015. Twitter projected second quarter revenue to be between $470 million and $485 million. In addition, Twitter lowered its full year 2015 revenue forecast to between $2.17 billion and $2.27 billion. Lastly, the Company reported that Twitter’s MAUs only increased 5% over the prior quarter.
On this news, Twitter’s share price fell from $51.66 per share on April 27, 2015 to a closing price of $42.27 on April 28, 2015—a $9.39 or a 18.18% drop.
In addition, on July 28, 2015, Twitter announced its second quarter 2015 financial results and its projections for the third quarter of 2015. The Company reported non-GAAP income of $49 million, or $0.07 non-GAAP EPS, and revenue of $502 million for the second quarter. Additionally, Twitter projected third quarter revenue to be between $545 million and $560 million.
On this news, Twitter’s share price fell from $36.54 per share on July 28, 2015 to a closing price of $31.24 on July 29, 2015—a $5.30 or a 14.51% drop.
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If you invested in Twitter common stock or options between February 6, 2015 and July 28, 2015 and would like to discuss your legal rights, visit www.faruqilaw.com/TWTR . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding Twitter’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
