Snap Inc.

  • Active

Investigation
10/21/2021

Initial Lawsuit
11/11/2021

Lawsuit Progression
01/31/2022

Investigation

  • Continous Holding
    July 22, 2020 to October 21, 2021
  • Proposed Claim
    Securities Violation

Did Snap Inc. (SNAP) mislead investors about the impact of Apple’s changes to privacy settings on Snap’s advertising business and ability to transition?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Q3 2021 - Unmet Expectation

10/21/2021

SEC Filing

Snap releases its Q3 2021 financial results, short of expectations. Revenue increased 57% to $1,067 million, compared to the prior year, and previously announced revenue between $1,070 million and $1,085 million.

During the conference call, Snap’s executives disclosed that Apple’s changes “have adversely affected [its] targeting, measurement, and optimization capabilities, and in turn affected [its] ability to measure the effectiveness of advertisements on our services.” Executives added that this “has resulted in, and in the future is likely to continue to result in, reduced demand and pricing for [its] advertising products and could seriously harm [its] business.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$55.14 $75.11 $-19.97 -26.59%
See more on Factual Timeline

Initial Lawsuit

A Snap Inc. (SNAP) investor filed a securities class action lawsuit on behalf of persons or entities who purchased or otherwise acquired publicly traded Snap securities between July 22, 2020 and October 21, 2021, inclusive.

  • Filing Date
    11/11/2021
  • Class Period
    07/22/2020 to 10/21/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Black v. Snap Inc. et al
  • Docket Number
    2:21-cv-08892
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) Apple’s privacy changes would have, and were having, a material impact on the company’s advertising business;
(2) Snap overstated its ability to transition its advertising with Apple’s privacy changes;
(3) Snap knew of, but downplayed, the risks of the impact that Apple’s privacy changes had on the company’s advertising business;
(4) Snap overstated its commitment to privacy; and
(5) as a result of the foregoing, defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.

Defendants

  • Company
    Snap Inc.
  • Chief Executive Officer
    Evan Spiegel
  • Chief Financial Officer
    Derek Andersen
  • Chief (Other)
    Jeremi Gorman
  • Chief Accounting Officer
    Rebecca Morrow

Lawsuit progression

  • Docket Number
    2:21-cv-08892
  • Court
    California Central District Court

Lead Counsel

01/31/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Amended Complaint

03/18/2022

Court-appointed Lead Plaintiff Oklahoma Firefighters Pension and Retirement System brings this securities class action on behalf of itself and all other persons and entities who purchased or otherwise acquired Snap Inc. (SNAP) publicly traded securities, and/or sold Snap put options, between February 5, 2021, and October 21, 2021, inclusive, and were damaged thereby.

  • Updated Class Period
    02/05/2021 to 10/21/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

05/03/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”SNAP” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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