Twitter Investors Sue Over Less Effective Targeted Ads (1)

Twitter Inc. allegedly failed to tell investors that changing settings so users had more control over their data could hurt the company’s ability to deliver targeted advertising, a suit in the Northern District of California said.

The social media giant told investors it had fixed issues related to user choice settings for personalized advertising and data-sharing in August. But it didn’t reveal how those changes “adversely affected Twitter’s ability to target advertising,” according to a would-be class suit filed in the U.S. District Court for the Northern District of California Oct. 29.

Twitter declined to comment Oct. 30.

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