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Twitter company performance class action lawsuit overview:
- Who: William Baker filed a class action lawsuit against Twitter Inc. and its co-founder Jack Dorsey, CEO Parag Agrawal, and CFO Ned Segal.
- Why: Baker claims Twitter failed to disclose that the company is dealing with security concerns and has not taken steps to address the issue.
- Where: The class action lawsuit was filed in California federal court.
Twitter made materially false and misleading statements about the social networking company’s business, operations, and prospects, a new class action lawsuit alleges.
Plaintiff William Baker claims Twitter, along with its co-founder Jack Dorsey, CEO Parag Agrawal, and CFO Ned Segal, failed to disclose and actively hid security concerns about the platform from its board, the investing public, and regulators.
Baker argues Twitter has not taken steps to improve its security and ultimately has refused to address the alleged issues.
“Defendants’ statements about Twitter’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times,” states the Twitter class action.
Baker wants to represent a nationwide class of investors who acquired Twitter securities on the NYSE and were subsequently damaged.
Ex-Twitter executive blows whistle on alleged security concerns
The alleged truth about Twitter’s security and performance issues came to light on Aug. 23 after CNN published an article that included a disclosure from an ex-Twitter executive, according to the Twitter class action.
The whistleblower, Peiter “Mudge” Zatko, claimed that Twitter is dealing with major security issues which endanger its users, shareholders, national security, and democracy itself, according to the Twitter class action.
Baker claims shares for Twitter securities fell more than 7% after the news came out, damaging investors.
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, Plaintiff and other Class members have suffered significant losses and damages,” states the Twitter class action.
Baker claims Twitter is in violation of the Securities Exchange Act of 1934. He is demanding a jury trial and requesting declaratory relief along with an award of damages for himself and all class members.
In July, Twitter confirmed that it was the victim of a data breach which exposed the personal information of 5.4 million account holders.
Are you a Twitter investor who was damaged after news of its alleged security issues came to light? Let us know in the comments!
The plaintiff is represented by Laurence M. Rosen of The Rosen Law Firm, P.A.
The Twitter company performance class action lawsuit is Baker v. Twitter Inc., et al., Case No. 2:22-cv-06525, in the U.S. District Court for the Central District of California.
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