Money Stuff: Is the Twitter Ban Securities Fraud?

On Friday, after market hours, Twitter Inc. announced that it would “permanently suspend” U.S. President Donald Trump from its platform for violating its “Glorification of Violence” policy.[1] Twitter’s stock was down about 7% as of 10:30 this morning.

Last Wednesday, a Trump-inspired mob stormed the U.S. Capitol in a deadly effort to overturn an election and keep Trump in power. And on Thursday, I asked, because readers kept asking me: Is that securities fraud? I asked it in a footnote, and not very seriously, but I did say that “I would not be entirely surprised if someone sues Twitter Inc. or Facebook Inc. alleging securities fraud for their role in amplifying Trump’s incitement.”