Twitter faced with a lawsuit just days before its expected float

Oliver Smith
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TWITTER was sued yesterday for $124m (£77.5m) by two companies claiming the private business fraudulently had them organise a private sale of shares to stoke investor interest for its upcoming public offering, then cancelled it.

“Twitter never intended to complete the offering on behalf of Twitter stockholders, in the private market, thereby causing substantial damages to the plaintiffs in the loss of commissions, fees and expenses, as well as through their business reputation,” the lawsuit filed in Manhattan’s US District Court on behalf of Precedo Capital Group and Continental Advisors said.

A spokesman for Twitter said in a statement that the company never had a relationship with Precedo or Continental Advisors and described the lawsuit as without merit.

The lawsuit comes as anticipation builds for Twitter’s public offering, widely believed to be scheduled for 7 November.