The company’s management is accused of fraud with the statements of whistleblowers
To boost the stock price of the platform, shareholder William Baker filed a complaint in federal court in California saying that Twitter CEO Parag Agrawal and other managers had broken federal securities laws by fabricating claims of operational failures.
Twitter investors seek class-action status
The investors’ lawsuit claims that Twitter Inc. officials “should be held liable for concealing operational issues on a prominent social media platform and terminating a whistleblower who tried to solve those issues.”
One of the reasons Elon Musk mentioned a $44 billion purchase of the firm is that this case may be the first in which whistleblower charges are predicated on investors’ being able to hold Twitter officials accountable for their alleged improper handling of whistleblower Pater Zatko’s concerns.
The lawsuit requests a class-action status on behalf of all Twitter shareholders who have held shares for two years, commencing in 2020.