Twitter lost more than half a billion dollars after paying $809.5 million (£588 million) to resolve a long-running lawsuit, in the three months leading up to September.
In 2015, the social media behemoth was accused of deceiving investors about user engagement.
According to BBC, despite this one-time penalty, its quarterly sales increased by 37% as it avoided the impact of Apple’s privacy rules, which affected rivals like Snap and Facebook.
Twitter’s stock rose 3% as a result of this.
In September, Twitter and its stockholders agreed to resolve a class action lawsuit that had been pending since 2016.
Twitter allegedly deceived investors regarding how many users were active on the network each month and how often they saw Twitter’s timeline, according to the lawsuit.
The company denied any wrongdoing, but agreed to pay the claim with cash on hand, indicating that it would harm the company’s bottom line this quarter.
And it did, with Facebook reporting a net loss of $537 million (£390 million) in the third quarter.
