Class Action Lawsuit Filed Against Snap Inc. over Alleged Securities Law Violations

Strategic Insights -

A class action lawsuit has been filed against Snap Inc. (NYSE: SNAP) by Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, on behalf of investors who purchased or acquired Snap securities between April 29, 2025, and August 5, 2025. The lawsuit alleges that Snap's officers made materially false and misleading statements about the company's business, operations, and prospects during this period, hiding adverse facts about the company's advertising revenue growth. Investors who suffered losses in Snap have until October 20, 2025, to request the Court to appoint them as lead plaintiff.

Key Takeaways:

  • The lawsuit alleges that Snap's officers misrepresented the true state of the company's advertising performance by issuing positive statements while concealing adverse facts about declining advertising revenue growth.
  • The complaint alleges that Snap's advertising revenue growth had declined from 9% in the first quarter of fiscal 2025 to 1% in April, due to the company's execution failures.
  • The lawsuit seeks to recover damages against Snap's officers for alleged violations of federal securities laws.
  • Investors who purchased or acquired Snap securities between April 29, 2025, and August 5, 2025, are eligible to join the case.
  • Peretz Bronstein, Esq., and Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC, are representing the investors in this case.
  • The firm will ask the court to reimburse them for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if they are successful.

Statistics:

  • The lawsuit covers a period of approximately 4 months, from April 29, 2025, to August 5, 2025.
  • The complaint alleges that Snap's advertising revenue growth declined significantly during this period, from 9% to 1%.
  • 10% of the total quarterly revenue growth is attributed to the company's own execution failures.
  • Investors who suffered losses in Snap have until October 20, 2025, to request the Court to appoint them as lead plaintiff.

Sources:

  • Newsfile Corp. - September 22, 2025
  • Bronstein, Gewirtz & Grossman, LLC (bgandg.com/SNAP)