The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Snap Inc. (NYSE: SNAP) who purchased shares (1) pursuant and/or traceable to Snap’s initial public offering on or about March 2, 2017 and/or (2) between March 2, 2017 and June 6, 2017. The action, which was filed in the U.S. District Court for the Central District of California, alleges that the Company violated federal securities laws.
The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to discloses that: (1) Snap’s reported user growth was materially false and misleading; and (2) as a result, Snap’s public statements were materially false and misleading at all relevant times.
On May 10, 2017, Snap disclosed disappointing user growth in its first quarterly report. For the quarter, Snap reported 166 million daily users, only 8 million more than the previous period and only 44 million more than the same period in the prior year. On this news, shares of Snap fell $4.93 per share or over 21% to close at $18.05 per share on May 11, 2017. On May 16, 2017, Bloomberg reported that a former Snap employee 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.”
Shareholders have until July 17, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.