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Class action lawsuits

Class Action Lawsuit Filed Against Snap Inc. Alleging Misleading Business Prospects

Strategic Insights

— 1 min read

A class action lawsuit has been filed against Snap Inc., the parent company of Snapchat, on behalf of investors who purchased or acquired the company's securities between April 29, 2025, and August 5, 2025. The lawsuit alleges that Snap Inc. misled investors regarding its business prospects, creating a false impression of reliable information about advertising revenue and growth. According to the complaint, the company's optimistic reports fell short of reality, and defendants claimed a lack of visibility due to macroeconomic conditions.

Key Takeaways:

  • The class action lawsuit was filed on behalf of investors who purchased or acquired Snap Inc. securities between April 29, 2025, and August 5, 2025 (Case No. 2:25-CV-07844).
  • The lawsuit alleges that Snap Inc. misled investors regarding its business prospects, including advertising revenue and growth.
  • The complaint states that the company's optimistic reports fell short of reality and that defendants claimed a lack of visibility due to macroeconomic conditions.
  • On August 5, 2025, Snap Inc. announced its financial results for the second quarter of fiscal 2025, disclosing a deceleration in advertising revenue growth.
  • The price of Snap's common stock declined from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, a decline of over 17%.
  • Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP.
  • The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.
  • Shareholders who choose to take no action can remain an absent class member.

Statistics:

  • The class action lawsuit covers investors who purchased or acquired Snap Inc. securities between April 29, 2025, and August 5, 2025.
  • The company's common stock price declined by over 17% from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025.
  • The price drop resulted in a total loss of over 17% for shareholders.

Sources:

  • Robbins LLP, news release, September 8, 2025
  • San Diego, September 8, 2025, PRNewswire

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