KSF News, Updates, & Insights

$38 Million Proposed Settlement in Twitter Litigation

On December 17, 2020, Plaintiffs and Defendants memorialized their agreement to resolve the stockholder derivative lawsuit captioned Bassett Family Trust v. Costolo, et al., C.A. No. 2019-0806-TM (Del. Ch.) and two related stockholder derivative actions. KSF’s stockholder derivative action was brought on behalf of Twitter, Inc. (“Twitter”) against several of Twitter’s current and former directors and officers for breach of fiduciary duties involving false and misleading statements about Twitter’s user engagement and growth and for insider trading. Plaintiffs were able to secure a settlement providing that Twitter’s board of directors will pay $38 million in cash to Twitter. Twitter’s board will also adopt a series of corporate governance reforms. The proposed settlement is pending approval in the Delaware Court of Chancery, with a final approval hearing scheduled for March 19, 2021.