Posted 51 days ago
Twitter on Monday disclosed that it expects to lose as much as $250 million for using personal information users provided for security purposes to target advertising instead, after receiving a draft complaint from the Federal Trade Commission.
The stock dropped about 1% after hours on the announcement.
The company made the disclosure in its second quarter 10-Q financial filing with the SEC, saying that, "The allegations relate to the Company's use of phone number and/or email address data provided for safety and security purposes for targeted advertising during periods between 2013 and 2019. The Company estimates that the range of probable loss in this matter is $150.0 million to $250.0 million and has recorded an accrual of $150.0 million."
The estimate comes after the FTC sent a draft complaint to Twitter on July 28 for violating the company's 2011 consent order with the federal agency. That consent order required Twitter to establish and maintain a comprehensive security program and barred the company from misleading consumers about the extent of its security and privacy practices.
"The matter remains ... (Read more)
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