Twitter sued for $124m over alleged cancelled share sale They say Twitter claimed to be setting up a bulk sale of employees' shares to a private investor, GSV Asset Management, in order to prevent the "overhang" of Twitter employees wanting to sell off shares. In this way, the plaintiffs say, Twitter claimed it would prevent the share price volatility that Facebook saw last year when thousands of staff were able to sell their holdings following Facebook's own tumultuous IPO. Institutions would be able to invest in GSV's Twitter fund. They are asking for $24m in compensation and $100m in additional damages. Twitter is set to list on the New York Stock Exchange in the next few days at a value of around $10bn. Precedo and Continental say their work on the cancelled share sale helped to establish this value, and that Twitter was unsure of the valuation given its relatively low revenues at the time. A Twitter spokesman said: "We've never had a relationship with these plaintiffs. Their claim is completely without merit. The companies filed the complaint in a New York court last week. "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 filing said.