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back to article Twitter duped us, coupon-clippers claim

The most-anticipated IPO since pets.com Facebook has come under a cloud, with a lawsuit launched accusing Twitter of cancelling a “fraudulently” organised private sale of shares. In their Manhattan-filed complaint, Precedo Capital Group and Continental Advisors are claiming that Twitter wanted them to organise a private sale …

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  1. Tom 35

    Expenses?

    "substantial damages to the plaintiffs in the loss of commissions, fees and expenses"

    How are expenses a loss, unless they had a plan to hose them with campaign lunches.

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    1. Destroy All Monsters Silver badge
      Reply Icon
      Flame

      Lawyers, Leeches, IP advocates and other disgusting things

      "I can't get the cut that God himself entitled me to have... WAAAHHAAAAMBULANCE!"

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    2. Steve the Cynic
      Reply Icon

      Re: Expenses?

      "How are expenses a loss"

      Presumably because they expended them ahead of the putative private sale (in the expectation of being able to recover the expenses by receiving the commissions and fees), and then the putative sale didn't happen. This in turn meant that the expenses were expended without any gain, and therefore lost.

      Or something like that.

      Not that I have much sympathy with them at all, since they presumably knew / could work out that the putative sale was illegal / counter to regulatory policy.

      tl;dr.

      Short version: "Waaaaaaaa!! Nasty Twitter wouldn't let me make money doing something illegal with their shares!: Waaaaaaaa!!"

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      1. Rob
        Reply Icon

        Re: Expenses?

        I wonder if the 2 bringing the action are trying to lower the price per share at IPO stage so they can hoover up more than they can afford at the moment. Not that I think this will damage Twitter's share price unless there is some damning evidence to hand.

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  2. LarsG

    And how to you quantify what might have been.

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  3. Sir Barry

    If the facts are correct shouldn't "Twitter-approved buyer GSV Capital Management" be the company being sued or am I missing something?

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  4. Cliff

    And what's it really worth?

    Have they actually turned a proper trading profit yet? Or is this a 'we value each account at $1000, so with x,000,000 accounts we must be rich' valuations? The latter is what did so much damage in dotcomboomandbust1.0

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  5. DaLo

    So, if this is true, company A starts to negotiate a deal with company B.

    Seems like a good deal for company B so they start looking into it and realise they can make a lot of money out of it if it goes ahead.

    No contract is signed (however Company B may have told it's board that they are in for a bumper Christmas).

    Company A re-evaluates and decides that they are not going to go ahead.

    Company B then feels, without any form of contract, that it is entitled to claim all the money (at the top end of their estimates) all the money they might have got from the deal as well as a high percentage of the same again on top for damages?

    If this was to succeed then you could just tender for a contract and then claim all the money anyway if you weren't awarded it.

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  6. Michael 28

    Someone remind me again.

    ...What's their business model? (Twitter, I mean)

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    1. Cliff
      Reply Icon

      Re: Someone remind me again.

      1) Short messaging social network

      2) Hype

      3) IPO

      4) ???

      5) Profit !!!

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  7. Anonymous Coward
    Anonymous Coward

    This sounds like they are accusing Twitter of conspiring to inflate the stock price for the IPO, that would be pretty serious...has a complaint been filed with the SEC?

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