Twitter Inc. announced on Monday a settlement of three shareholder proceedings accusing executives of misreporting indicators of user growth and engagement. In some cases, we predict that growth has not happened.
Under the proposed transaction, the San Francisco company’s board of directors will not pay a monetary penalty, but it will need to adopt greater corporate strategy and risk oversight, and strengthen control and disclosure. For example, if the board adds members, it needs to add independent directors and consider the diversity of doing so. The Board also creates the position of an independent Chief Compliance Officer responsible for maintaining a system for reporting and investigating potential compliance concerns.
According to Filing, the only financial outcome of the proceedings is a $ 38 million payment from the insurance company to Twitter, which is used for general corporate purposes and also costs Twitter administration. The oldest proceeding occurred in 2017 and was pending in the Chancery Court of Delaware and the Federal District Court of Delaware.
The settlement was reached after years of proceedings and several mediation sessions last year, including a company that provided plaintiffs with internal documents. Besides Twitter
The individuals nominated in the proceedings include Chief Executive Officer Jack Dorsey and former CEOs Dick Costolo and Evan Williams. Other plaintiffs include former Chief Financial Officer Anthony Noto (now CEO of SoFi), current Board Chairman Patrick Pichette and Board members Omid Cordestani, Martha Lane Fox and Bret Taylor. It is included.
Under the settlement, plaintiffs continue to deny charges against them and do not admit liability or misconduct.by Reconciliation agreementPlaintiffs believe that the terms directly address their complaints and are in the best interests of Twitter and its shareholders.
A settlement hearing was set up on March 19.
Twitter promises to reform shareholder proceedings settlement
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D22900AF5B5B%7D&siteid=rss&rss=1 Twitter promises to reform shareholder proceedings settlement