7 months ago
Twitter got more bad news this week in the form of a shareholder lawsuit accusing CEO Jack Dorsey and other executives of concealing facts about Twitters slow user growth, even as they sold their personal stock holdings for hundreds of millions of dollars in insider profits.
The complaint, filed in California federal court by shareholder Jim Porter, seeks to force Dorsey and others, including former CEO Dick Costolo and founder and Board member Evan Williams, to repay profits they made since February 2015, and for Twitter TWTR 1.13% to shake up its board and impose new financial controls.
The crux of the complaint turns on how the Twitter executives portrayed the companys growth performance, accusing the company of quietly swapping measures for monthly average users (MAUs) and timeline views (which reflect how often a visitor engages with the site) in favor of a metric called daily average users (DAUs).
Click here to read more of Jeff John Roberts story from Fortune.