New York - Twitter won dismissal of a lawsuit in which two financial firms accused the social media company of engineering a failed private sale of its shares in 2012 to stoke interest in its initial public offering.
Precedo Capital and Continental Advisors, failed to prove Twitter was responsible for the failure about a year before the company’s IPO, US District Judge Shira Scheindlin ruled today in Manhattan.
The companies accused San Francisco-based Twitter of fraudulently using the aborted sale, which was to have offered as much as $278 million worth of shares, to set a $10 billion valuation for itself and a floor price for the IPO.
Precedo and Continental Advisors sought $124 million in damages.
The case is Precedo Capital Group Inc. v. Twitter Inc., 1:13-cv-07678, US District Court, Southern District of New York (Manhattan). - Bloomberg News