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.
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.