Twitter Projects Loss of Up To $250 Million in FTC Case

Social Media company Twitter says case involves use of phone and email data.
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Twitter Inc.  (TWTR) - Get Report said Monday that a Federal Trade Commission complaint over data security could result in a loss of up to $250 million.

The company said in a filing with the Securities and Exchange Commission that it had set aside a $150 million accrual to account for the possible liabilities arising from the case.

Twitter said it received a draft complaint from the FTC on July 28 “alleging violations of the company’s 2011 consent order with the FTC and the FTC Act.”

According to the company, “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.”

Twitter said it "estimates that the range of probable loss in this matter is $150 million to $250 million. 

As of now, “the matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome,” Twitter said in the filing.

Shares of Twitter fell 39 cents, or 1%, to $36.00 in after-hours trading.

Elsewhere, social media stocks were mixed Monday.

Among notable social media stocks, five rose while seven fell.

The Global X Social Media ETF  (SOCL) - Get Report rose 70 cents, or 1.49%, to $47.72.

Microsoft MSFT shares rose $11.53, or 5.62%, to $216.54. The company is negotiating to acquire the U.S. operations of TikTok, owned by China’s ByteDance. President Donald Trump has threatened to shut down TikTok’s U.S. operations over concerns it poses a national security threat. 

Snap  (SNAP) - Get Report shares fell $1.20, or 5.35%, to $21.22.

The Nasdaq Composite Index rose 157.52 points, or 1.47%, to 10,902.80.

Microsoft is a part of Jim Cramer’s Action Alerts PLUS investing club.