PDF

Snap Inc. Class Action Lawsuit - SNAP

Company Name
Snap Inc.
Stock Symbol
SNAP
Class Period
July 22, 2020 to October 21, 2021
Motion Deadline
January 10, 2022
Court
Central District of California
42 days left to seek lead plaintiff status

Case Summary

The Snap class action lawsuit seeks to represent purchasers of Snap Inc. (NYSE: SNAP) securities between July 22, 2020 and October 21, 2021, inclusive (the “Class Period”) and charges Snap as well as certain of its top executives with violations of the Securities Exchange Act of 1934.  The Snap class action lawsuit was commenced on November 11, 2021 in the Central District of California and is captioned Black v. Snap Inc., No. 21-cv-08892.

If you wish to serve as lead plaintiff of the Snap class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Snap class action lawsuit must be filed with the court no later than January 10, 2022.

CASE ALLEGATIONS: Snap relies on user data for its advertising business.  In June 2020, Apple Inc. announced new data privacy features for iOS, its mobile operating system for the iPhone.  In April 2021, Apple released the new data privacy features for iOS.

The Snap class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Apple’s privacy changes would have, and were having, a material impact on Snap’s advertising business; (ii) Snap overstated its ability to transition its advertising with Apple’s privacy changes; (iii) Snap knew of, but downplayed, the risks of the impact that Apple’s privacy changes had on Snap’s advertising business; (iv) Snap overstated its commitment to privacy; and (v) as a result, defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.

On October 21, 2021, Snap disclosed weaker-than-expected revenue and weaker-than-expected guidance because of its advertising business, including due to Apple’s privacy changes.  Snap also disclosed the risks of heightened restrictions on Snap’s access and use of user data due to Apple’s privacy update, revealing that “changes have adversely affected our targeting, measurement, and optimization capabilities, and in turn affected our ability to measure the effectiveness of advertisements on our services.  This has resulted in, and in the future is likely to continue to result in, reduced demand and pricing for our advertising products and could seriously harm our business.”  On this news, Snap’s stock price fell 26%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Snap securities during the Class Period to seek appointment as lead plaintiff in the Snap class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Snap class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Snap class action lawsuit.  An investor’s ability to share in any potential future recovery of the Snap class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

Main Menu