Twitter Profits Fall Heavily After Settling Long-Running Lawsuit

Twitter has sadly lost over half a billion dollars in just three months after it paid $809.5m (£588m) to settle a long-running lawsuit.

In 2015, the social media giant was accused of misleading investors over user engagement.

However, despite this one-off charge, its quarterly revenue grew to 37% as it managed to shrug off the impact from Apple’s privacy changes which hit rivals such as Facebook.

READ ALSO: Some Nigerians Not Happy As Twitter Chooses Ghana As It Headquarters In Africa

In September,  Twitter agreed to settle a class action with their shareholders dating back to 2016.

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According to the suit, Twitter misled investors about how many users were active on the platform each month as well as how frequently it’s users viewed their timeline.

The company denied any wrongdoing but agreed to use cash on hand to settle the claim, flagging that it would hurt its bottom-line this quarter.

And that it did, with the San Francisco based company reporting a net loss of $537m (£390m) in the third quarter.

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