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Twitter Sued by Investor for Failing to Deliver on User Growth

  • Lawsuit seeks to represent holders who bought stock in 2015
  • Company hasn’t delivered on 2014 promises, suit claims
Bloomberg business news

Beyond 140 Characters: Dorsey's Vision for Twitter

Twitter Inc. was sued by a shareholder over claims it misled investors on key growth metrics, including user count and user engagement, almost two years after touting plans to top 500 million users.

The suit, filed Friday in federal court in San Francisco, comes as Twitter struggles to keep its audience from defecting to platforms such as Snapchat Inc. and Instagram Inc. Snapchat, the ninth-most-popular app in the U.S., surpassed 50 million monthly mobile app users in April, besting Twitter for the first time, Bloomberg Intelligence analysts Jitendra Waral and Sean Handrahan said in an Aug. 18 report, citing ComScore.