b'In Re Twitter, Inc. Sec. Litig., No. 19-cv- taking so long, the CFO stated that Twitters work with 07149, 2020 WL 7260479 (N.D. Cal.MAP was ongoing and that while Twitter was making Dec. 10, 2020)improvements to MAP, it continued to sell the existing Ad Performance Overinflated ByMAP product. The CFO also stated, in response to a question regarding Twitters monetization capabilities Privacy Issuesoutside of the U.S. that Twitters strength just varies As noted above, Twitter, Inc. is a well-known socialfrom one geography to anotherAsia, for example, has media platform on which members can post interactivetended to be more MAP-focused historically. messages or tweets. Twitter generates the majority ofOn October 24, 2019, before the markets opened, the its revenue from advertising. Twitter collects personalCEO and CFO held an investor call regarding Twitters 3Q information about its users based on their usage on the2019 financial results. During the call, the CFO disclosed platform, as well as device- and data-specific informationthat the changes Twitter implemented to address the in order to more effectively target its ads. Twitter then usesprivacy issues disclosed on August 6, 2019 primarily this personalized information in the advertising productsaffected the legacy MAP product, negatively affected it offers its ad customers. One specific product, Mobile3Q revenue growth by 3 or more points, and that these Application Promotion (MAP), prompts users to install annegative effects would continue through at least 4Q 2019 advertisers mobile application on their devices, or by 4 or more points. Defendants further disclosed a 1% re-engage with a mobile application that the user hasdecline in Japanese revenue due to a meaningful drop already downloaded. MAP generates advertising revenuerelated to bugs and that CPE was down 12%, reflecting by sharing user date with advertisers. MAP is mosta mix shift from MAP to video ad formats (which have effective when an advertiser knows information about alower CPEs) and life-for-life price decreases across most users device settings. Advertisers using MAP only pay forad formats. That day, Twitters shares declined over 20% each click on the install or open buttons in the ad.from $38.83 per share to $30.73 per share.On July 26, 2019, Twitter disclosed its financial results for 2Q 2019 in a letter to shareholders. In this letter, as well as on a conference call with investors that day, Twitter,The court found that many of the its CEO, and its CFO represented that improvements inchallenged statements were inactionable MAPs stability, performance, and scale were ongoing and would have a positive impact on revenue. Thesepuffery, explaining [t]he statements at representations were repeated in Twitters 2Q 2019issue here are not measurable and not Form 10-Q, which also contained several risk disclosures, including that [o]ur products and services may containtethered to facts that a reasonable person undetected software errors, which could harm ourwould deem important to a securities business and operating results and that [c]hanges to existing products, services and initiatives could fail toinvestment decision.attract users, content partners, advertisers and platform partners or generate revenue.On August 6, 2019, Twitter announced to its users thatInvestors filed a putative class action lawsuit against it had recently discovered and fixed issues relatedTwitter, its CEO and its CFO alleging violations of Sections to [] setting choices for the way personalized ads are10(b) and 20(a) of the Securities Exchange Act, and delivered and when certain data is shared with trustedRule 10b-5 promulgated thereunder, based on various measurement and advertising partners. Twitter disclosedallegedly fraudulent statements or omissions regarding that the issues resulted in Twitter taking certain actionsMAP, including statements about (1) MAP progress and related to personalized advertising and data sharing, evenrevenue prediction, (2) software bugs affecting MAP, and if users had not given permission to do so. Specifically,(3) MAPs progress and Asias historical focus on MAP. the issues were that (i) from May 2018 onward, the dataDefendants moved to dismiss the consolidated amended of users who clicked through an advertisement for acomplaint, and the court granted the motion, with leave mobile application to the app itself was shared, and (ii)to amend, holding that plaintiffs failed to plead a material from September 2018 onward, Twitter showed usersmisrepresentation or omission and scienter.personalized ads based on inferences made from the users devices. Twitter disclosed that the issues wereThe court found that many of the challenged statements remedied on August 5, 2019.were inactionable puffery, explaining [t]he statements at The following month, at a September 4, 2019 conference,issue here are not measurable and not tethered towhen asked why the roll out of an improved MAP was 48'