Because of a settlement, Twitter announces a net loss of $ 537 million

Twitter records a net loss of 537 million dollars during the third quarter of this year, after entering into a settlement of a lawsuit by investors who accused people in the company of not revealing the full picture of the company's condition when they sold their private shares they owned in Twitter.

Twitter announced on Tuesday that it recorded a net loss of $ 537 million during the third quarter of this year, after entering into a settlement of a lawsuit filed by investors in the site years ago.

These investors claimed that they were misled about the slowdown in user growth.

Although revenue rose sharply due to strong advertising sales, the operating loss of the popular social network amounted to $743 million, and the company paid more than $800 million in fines to settle the lawsuit.

The lawsuit, brought by investors in 2016, included accusations that people like the site's former chairman Dick Costolo did not reveal the full picture of the company's condition when they sold their private Twitter shares.

Investors claimed that the board members sold their shares at "artificially inflated" prices. The lawsuit was filed a year after Twitter's share value plummeted as the company revealed its slowdown in growth.

Despite the cost of settling the lawsuit, Twitter revealed that third-quarter revenue was $1.3 billion, an increase of 37 percent over the previous year.

The company indicated that advertising revenue reached $1.14 billion, 41% more than the results for the third quarter of 2020.