Legal News

Two Financial Firms Make Sketchy Suit Against Twitter
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

It’s debatable whether the two financial firms that sued Twitter Wednesday should be taken seriously. They are seeking $124 million in damages, and $100 in punitive damages, for what they claim was Twitter’s scheme to artificially bolster their IPO, intended to go public before Thanksgiving, by setting the two firms, Precedo Capital Group Inc. and Continental Advisers, on a roadshow to sell their stock, only to deny it after the tour was done.

Twitter plans to sell 70 million shares of their stock at $17 to $20 per share, bringing Twitter’s overall value to be about $12.5 billion.


The two financial companies toured various countries in three continents in 2012, getting individuals interested in buying $278 million in Twitter shares.

“The public will now be purchasing shares at an inflated price, based upon Twitter’s pre-IPO fraudulent misrepresentations,” claimed their lawsuit.

“Twitter never intended to complete the private sale of Twitter stock,” said the lawsuit. “Twitter’s intention was to induce Precedo Capital and Continental Advisors to create an artificial private market wherein Twitter could maintain that a private market existed at or about $19 per share for the Twitter stock.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Twitter, for their part, said flat out, “We’ve never had a relationship with these plaintiffs. Their claim is completely without merit.”

It’s a sentiment that David Peirez, a partner at Riesman, Peirez, Reisman & Copabianco, shared, as reported in Bloomberg Businessweek, when he called the lawsuit, “sour grapes by two companies.”

“It appears that the plaintiffs now see a pot of gold in the upcoming very hot IPO. This has all the markings of a hold up.”



Immigration Paralegal


JOB TITLE: Immigration Paralegal JOB TYPE: Full Time LOCATION: Ithaca, NY SA...

Apply now

Associate Attorney

USA-FL-Fort Lauderdale

A litigation Associate Attorney is being sought by our law firm to add to the civil litigation and b...

Apply now

Associate Attorney - Immigration Practice Group


JOB TITLE: Associate Attorney – Immigration Practice Group JOB TYPE: Full Time ...

Apply now

Family Law Paralegal


Boutique family law firm is hiring for a full-time paralegal. The firm\'s primary practice areas are...

Apply now




Search Now

Patent Agent


Durham office of a BCG Attorney Search Top Ranked Law Firm seeks a patent agent with 2-6 years of ex...

Apply Now

Patent Agent


Raleigh office of a BCG Attorney Search Top Ranked Law Firm seeks a patent agent with 2-6 years of e...

Apply Now

Patent Agent

USA-NC-Winston Salem

Winston Salem office of a BCG Attorney Search Top Ranked Law Firm seeks a patent agent with 2-6 year...

Apply Now


To Top