Settlement of Snap Inc. Securities Cases
Case No. JCCP 4960
The parties have reached a settlement of this action, pending in the Superior Court of the State of California, County of Los Angeles. The settlement provides for the payment of $32,812,500 for the benefit of eligible Settlement Class Members. Plaintiffs Joseph Iuso, Chenghsin D. Hsieh and Wei C. Hsieh alleged a securities class action on behalf of those who purchased or otherwise acquired common stock in or traceable to the initial public offering by defendant Snap, Inc. (“Snap”) that closed on March 7, 2017 (the “IPO”), and sought remedies under §§11, 12(a)(2) and 15 of the Securities Act of 1933. Plaintiffs asserted that Snap, certain Snap officers and directors, and the IPO’s underwriters were liable for materially false and misleading statements and omissions in the Registration Statement for the IPO, related to trends and uncertainties in Snap’s growth metrics, a potential patent-infringement action and stated risk factors.
The Settlement Class consists of all Persons and entities who purchased or otherwise acquired Snap common stock between March 2, 2017 and July 29, 2017, inclusive, and were damaged thereby. Also included within the Settlement Class are all Persons and entities who purchased shares of Snap Common Stock pursuant or traceable to Snap’s Initial Public Offering on or about March 2, 2017 and/or on the open market. Excluded from the Settlement Class are Defendants, members of families of Defendants and their legal representatives, heirs, successors and assigns, and any entity in which Defendants have or had a controlling interest (defined as having a majority ownership interest or ownership of the majority of voting stock of the entity). Also excluded from the Settlement Class is any Person who validly requested exclusion pursuant to the requirements set forth in the Notice.
The settlement was approved by the Court on April 14, 2021.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.