In re Twitter Inc. Sec. Litig.
Case Summary
Largest Securities Fraud Class Action Recovery in the Ninth Circuit in the Last Decade
On the eve of a federal jury trial in Oakland, Robbins Geller Rudman & Dowd LLP and co-counsel obtained a record-breaking $809,500,000 settlement against Twitter, Inc. in a securities fraud class action. Plaintiffs National Elevator Industry Pension Fund, represented by Robbins Geller, and KBC Asset Management NV, represented by co-lead counsel, led the class action case.
“Our long track record of vigorously prosecuting securities fraud cases through trial together with our readiness to present this case to a jury when it settled are what enabled us to obtain this outsized recovery,” said Daniel S. Drosman, who served as lead trial counsel for Robbins Geller.
Plaintiffs National Elevator Industry Pension Fund and KBC Asset Management NV brought this action to recover their investment losses and losses for the class of shareholders who purchased Twitter stock between February 6, 2015 and July 28, 2015. The case involved allegations that Twitter committed securities fraud by concealing stagnant user growth and declining user engagement from investors, causing its stock to trade at artificially inflated price levels. The suit alleged that, when the truth was revealed, Twitter’s stock price dropped by 20%.
“The jury trial is a great equalizer, even for some of the most powerful entities on the planet. It levels the playing field and sets the stage for accountability,” said Tor Gronborg, a partner at Robbins Geller who serves as a lead attorney on the trial team.
In re Twitter Inc. Sec. Litig., No. 4:16-cv-05314-JST (SK) (N.D. Cal.).