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Class action lawsuits

Securities Class Action Lawsuit Filed Against Snap and Senior Executives

Strategic Insights

— 1 min read

A securities class action lawsuit has been filed against Snap and its senior executives, alleging that the company misled investors about its digital ad platform and growth prospects. The lawsuit follows Snap's disappointing Q2 2025 financial results, which led to a significant decline in its share price. Hagens Berman, a global plaintiffs' rights complex litigation firm, is now investigating whether Snap's management knew about ad platform issues and whether this adverse information should have been disclosed to investors earlier.

Key Takeaways:

  • The lawsuit seeks to represent investors who purchased or otherwise acquired Snap Inc. (NYSE: SNAP) securities between April 29, 2025, and August 5, 2025.
  • The complaint challenges Snap's assurances about the ongoing benefits of its ad platform improvements as a driver of revenue growth.
  • The lawsuit alleges that Snap created the false impression that it had reliable information about its expected advertising revenue and its growth prospects.
  • Investors allegedly learned the truth on August 5, 2025, when Snap reported its Q2 2025 financial results, revealing significant deceleration in ad revenue growth and a price drop of about 17%.
  • Hagens Berman is investigating whether Snap may have misled investors about now-admitted problems with its ad platform changes and the negative effect on growth.
  • Snap generates substantially all its revenue from advertising revenue generated from the display of advertisements on its flagship product – Snapchat.

Statistics:

  • 17% - The decline in Snap's share price the day after revealing Q2 2025 financial results.
  • 9% - The ad revenue growth rate in Q1 2025.
  • 1% - The ad revenue growth rate in April 2025.
  • $2.9 billion - The total amount of settlements achieved by Hagens Berman in cases of corporate accountability.
  • 30% - The maximum reward that whistleblowers may receive under the SEC Whistleblower program.

Sources:

  • GlobeNewswire (2025-09-08)
  • Hagens Berman (2025)

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