Twitter Sued for $124 M. for Pumping Investor Interest Before Its IPO

Nitasha Tiku · 10/30/13 02:18PM

Two financial firms filed a lawsuit in Manhattan federal court today alleging that Twitter had them organize a private sale of its shares and then cancelled the sale—all for the purpose of ratcheting up investor interest prior to its IPO. The complaint accuses Twitter of "using the aborted sale as a way to give the money-losing company a $10 billion market valuation and higher IPO price," says Reuters.