b'Defendants filed their answer to the amendedper share representing a decline of 18% and on April 29 by complaint on June 22, 2020. The class was certified on$3.78 per share closing at $38.49 per share representing November 25, 2020 and discovery is ongoing.a decline of 9%.On July 28, 2015, Twitter announced its Q2/15 financial In re Twitter, Inc. Securities Litigation, No.results and held an earnings call during which the then 16-cv-05314, 2020 WL 4187915 (N.D. Cal.CFO revealed that Twitters DAU/MAU had fallen to April 17, 2020)44% and that Twitter did not expect to see sustained meaningful growth in MAUs [for] a considerable period of Inconsistent User Engagement,time. Twitters stock price then declined each trading day Impact On Growth from July 9, 2015 through August 3, 2015, decreasing by a total of $12.81 per share. Twitter is a social media platform where users can post interactive messages called tweets that appear on otherInvestors filed a putative class action lawsuit against users feeds called timelines. Twitter monitors its userTwitter and its officers for purported violations of Sections engagement closely, acknowledging in public filings that10(b) and 20(a) of the 1934 Act, alleging that defendants both the size and engagement of its user base are criticalmisled investors by making public statements that did to its success. User engagement is critical to Twitters usernot reflect Twitters actual user engagement, specifically growth because increased engagement reduces userrelating to Twitters DAU and the DAU/MAU. Defendants turnover, or churn. Twitter formerly measured user growthmoved to dismiss, which the court granted in part and and engagement by evaluating the number of monthlydenied in part, allowing plaintiffs to proceed with their active users (MAU), Timeline Views, and Timelineclaims based on the theory that defendants omissions of Views per MAU. On November 12, 2014, Twitter hostedcertain information about DAU and DAU/MAU rendered an Analyst Day event, during which Twitter announcedtheir statements about user engagement and growth it would no longer measure Timeline Views, and wouldmisleading. The court certified the putative class, and instead focus on daily active users (DAU) and the ratio ofdefendants later moved for summary adjudication DAU to MAU (DAU/MAU). Twitters then CFO also statedfollowing discovery.that year-to-date DAU to MAU ratio for our top 20 marketsThe court denied defendants motion for summary is 48%. With respect to Twitters top 20 markets, theadjudication, concluding that, based on the evidence, a then CFO stated that those markets account for 80% oftrier of fact could determine that four statements made [Twitters] users and 90% of [its] revenue and that Twitterby defendants during the February 5, 2015 and April 28, could generate an additional $500 million in revenue2015 earnings calls were securities fraud due to material by increasing DAU/MAU to 51%. Following Analyst Day,omissions. Three of the four challenged statements Twitter closely tracked user-engagement metrics includingoccurred on the February 5, 2015 earnings call. The DAU/MAU, and its executives received pre-earnings callcourt first held that the then CFOs statement that [i]binders that included detailed information about the same.n our more mature markets, we have very high DAU to On February 5, 2015, during fourth quarter 2014 earningsMAU, 50% plus, may have been misleading because, call, the then CFO stated that [i]n our more matureon Analyst Day, defendants referred to mature markets markets, we have very high DAU to MAU, 50% plus, andas including Twitters top 20 markets, but DAU/MAU for in emerging markets we have very low DAU to MAUits top 20 markets had declined to 44.4% from the 48% at 20% range. They all migrate up to a higher rate overthat defendants reported at Analyst Day. In assessing the time. Twitters then CEO stated, after disclosing thatsecond challenged statement, that all markets DAU/MAU the net MAUs for 4Q 2014 was 4 million users, that ourmigrate up to a higher rate over time, the court held the MAU trend has already turned around, and our Q1 [2015]statement may have been misleading in light of evidence trend is likely to be back in the range of absolute netthat a 4Q 2014 earnings binder provided to executives adds that we saw during the first three quarters of 2014.before the earnings call showed the DAU/MAU had in fact On April 28, 2015, the company released its 1Q 2015declined in both Twitters top 20 markets and in emerging results and disclosed that its MAU was 302 million, upmarkets. The court in turn rejected defendants argument from 288 million the previous quarter. At that time, Twitterthat the statement was not misleading as it referred only announced it was reducing its revenue guidance for theto emerging markets because, among other things, that remainder of the fiscal year from a previous forecast ofwas not clear from the statement. The court held that a $2.3 billion to $2.35 billion to a range of $2.170 billion tothird statement by the then-CEO that our MAU trend $2.270 billion. During the earnings call later that day, thehas already turned around, suggested a positive trend then CFO stated that DAU to MAU ratios in in MAU growth and was misleading because defendants [Q1 2015] were similar to what they were by market relativesimultaneously omitted declining DAU/MAU trends. In to Analyst Day. Following the call, Twitters stock priceanalyzing the final challenged statement, from the April declined on April 28 by $9.39 per share to close at $42.2728, 2015 earnings call, that DAU to MAU ratios in the 20'