Twitter posted a net loss of $537 million during the third quarter of this year, as it settled a lawsuit brought years ago by investors in the site alleging that they were misled about the slowdown in user growth.
According to Arabiya Net, despite the sharp increase in revenue due to the strength of advertising sales, the operating loss of the popular social networking site amounted to $743 million, and contributed to this. The company paid more than $800 million in fines to settle the lawsuit.
The lawsuit brought by investors in 2016 included accusations that company officials, such as the site's former chairman Dick Costolo, did not reveal the full picture of the company's condition when they sold their private shares. that they have on Twitter.
Investors claimed that board members sold their shares at artificially inflated prices. The lawsuit was filed a year after the value of Twitter's stock plummeted, with the company revealing a slowdown in its growth.
Despite the cost of settling the lawsuit, Twitter revealed that third-quarter revenue was $1.3 billion, an increase of 37% over the previous year.
The company reported $1.14 billion in ad revenue, 41% more than the third quarter of 2020.
