Shareholders of X, formerly known as Twitter, were taken to task by a California federal judge over what was deemed as “sloppy legal writing” in their proposed class action lawsuit. The lawsuit arises out of allegations of misrepresentation relating to cybersecurity matters that supposedly led to a drop in stock value.
While the judge criticized the lackluster writing, there was also an indication that some of the claims may be granted a second chance. This would, however, be contingent on the shareholders’ ability to apply “common sense” and adhere to a “simple formula” when drafting an amended complaint.
The California federal judge’s decision to allow the shareholders of X an opportunity to reframe their claims seeks to strike a balance between proper judicial process and providing an avenue to redress legitimate grievances, if any. The reprimanded shareholders would do well to heed the judge’s advice in their subsequent filing.