Sign in Subscribe
Class action lawsuits

Snap Inc. Faces Class Action Lawsuit Over Securities Fraud

Strategic Insights

— 1 min read

Snap Inc., the parent company of Snapchat, is being sued by shareholders who claim they suffered losses due to the company's alleged securities fraud. The lawsuit, which seeks to recover losses for shareholders who were affected by the alleged fraud, alleges that Snap Inc. made misleading statements about its advertising revenue growth rate and concealed material adverse facts about the company's financial health. The alleged fraud occurred between April 29, 2025 and August 5, 2025, during which time Snap's stock price plummeted after the company announced a deceleration in advertising revenue growth.

Key Takeaways:

  • The class action lawsuit alleges that Snap Inc. provided misleading statements to investors about its advertising revenue growth rate, concealing material adverse facts about the company's financial health.
  • The lawsuit claims that Snap Inc. attributed the slowdown in advertising revenue growth to an issue related to its ad platform, the timing of Ramadan, and the effects of de minimis changes.
  • The price of Snap's common stock declined dramatically after the company announced its financial results for the second quarter of fiscal 2025, with a single-day decline of 17.15% from $9.39 to $7.78.
  • The lawsuit includes the option for shareholders who suffered losses to seek a recovery, even if they still hold their shares.
  • Levi & Korsinsky, LLP is representing the plaintiffs in the lawsuit, with a track record of winning high-stakes cases and securing hundreds of millions of dollars for aggrieved shareholders.

Statistics:

  • The alleged securities fraud occurred between April 29, 2025 and August 5, 2025.
  • The price of Snap's common stock declined by 17.15% in a single day, from $9.39 to $7.78, after the company announced its financial results.
  • Snap Inc. attributed the slowdown in advertising revenue growth to an issue related to its ad platform, the timing of Ramadan, and the effects of de minimis changes.

Sources:

  • Newsfile Corp. - September 15, 2025
  • Levi & Korsinsky, LLP

33 Whitehall Street, 17th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

Read more