Yesterday, we learned that dangerous falsehood and eye-watering mundanity platform Twitter made one shareholder very angry when it sold a pretty sweet convertible bond to raise $1 billion it didn’t need, all apparently to appease Elliott Management’s Paul Singer and save the jobs of founder Jack Dorsey and all of its board members, and all allegedly in contravention of the company’s fiduciary duties to that and other shareholders. Of course, shareholder lawsuits are nearly as common as humblebrags on Twitter, but the snowflakes there can’t seem to deal with more than one at a time.
The shareholder action claimed Twitter misled investors about two closely tracked metrics: monthly active users, a measure of the total number of users on its platform; and timeline views, a measure of how frequently users interacted with the platform.
Twitter said it would pay $809.5 million under the binding agreement to settle claims alleging securities law violations, adding that it continues to deny any wrongdoing or improper actions.
The company said it would use cash on hand to fund the settlement….
See? That billion from Silver Lake really will come in handy, especially if you ignore all of the other billions Twitter has sitting in the bank.
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