NOTABLE CASES

Snap, Inc. Agrees to Shareholder Settlement for $187.5 Million

February 7, 2020

CASE SUMMARY

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Snap’s reported user growth was materially false and misleading; and (ii) as a result, Snap’s public statements were materially false and misleading at all relevant times.

On May 10, 2017, post-market, Snap issued its first quarterly report as a public company, disclosing disappointing user growth at the Company’s Snapchat messaging platform. For the quarter, Snap reported 166 million daily users, only 8 million more than in the previous period and only 44 million more than the same period in the prior year” Snapchat’s slowest year-to-year growth rate in at least two years.

On this news, Snap’s share price fell $4.93, or 21.45%, to close at $18.05 on May 11, 2017.

On May 16, 2017, Bloomberg reported that a former Snap employee, Anthony Pompliano, had filed a lawsuit against Snap, “claim[ing] he was fired after three weeks on the job for raising questions about allegedly false growth metrics [and] seeking whistleblower protection against retaliation by [the] company.”

On this news, Snap’s share price fell $0.02, or 0.1%, to close at $20.72 on May 16, 2017.

CLASS DEFINITION

On behalf of all persons and entities who purchased or otherwise acquired Snap, Inc. (“Snap” or the “Company”) Class A common stock during the Class Period.

INITIAL FEDERAL FILING DATE

May 16, 2017

ELIGIBLE SECURITY ID’s

Snap, Inc. (SNAP)
BDZTR90; BF07Y69; BF0BY94; BFXPD63; BGPKCZ5; BKTHWN8; BYWYZP7

SNAP INC – REDH (no ticker)
83304A106; BD8DJ71

SNAP INC – REDH (SNAP)

US83304A1060

CLASS PERIOD

March 2, 2017 to August 10, 2017

SETTLEMENT AMOUNT

$187,500,000
Note: As of February 6, 2020, this is a tentative settlement only

CLAIM DEADLINE DATE

TBD

CLAIMS ADMINISTRATOR

TBD

COURT

U.S. District Court – California (Central)

LEAD PLAINTIFF

Tom DiBiase

LEAD COUNSEL FIRM

Kessler Topaz Meltzer & Check

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