Snap Inc. Faces Class Action Lawsuit Over Securities Fraud

Strategic Insights -

Snap Inc., the parent company of Snapchat, is at the center of a class action lawsuit alleging securities fraud between April 29, 2025, and August 5, 2025. The lawsuit seeks to recover losses incurred by shareholders who were misled by allegedly false and misleading statements regarding the company's advertising revenue growth rate. According to the complaint, Snap's executives provided overly positive statements to investors while concealing the decline in revenue growth from 9% in the first quarter to 1% in April. The company's stock price plummeted after announcing a deceleration in advertising revenue growth on August 5, 2025, with a 17.15% decline in a single day.

Key Takeaways:

  • The lawsuit alleges that Snap Inc. made false and misleading statements about its advertising revenue growth rate between April 29, 2025, and August 5, 2025.
  • The company's executives allegedly provided overly positive statements to investors while concealing the decline in revenue growth.
  • The stock price of Snap Inc. fell dramatically after the company announced a deceleration in advertising revenue growth, with a 17.15% decline in a single day.
  • Levi & Korsinsky LLP is representing the plaintiffs in the class action lawsuit and has secured hundreds of millions of dollars for aggrieved shareholders in the past.
  • The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve their clients.
  • Attorney Advertising. Prior results do not guarantee similar outcomes.

Statistics:

  • The stock price of Snap Inc. fell from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, a decline of 17.15% in a single day.
  • The lawsuit seeks to recover losses incurred by shareholders who were misled by allegedly false and misleading statements.
  • Levi & Korsinsky LLP has secured hundreds of millions of dollars for aggrieved shareholders in the past.

Sources:

  • "Levi & Korsinsky, LLP Announces Class Action Lawsuit On Behalf of Shareholders of Snap Inc. - SNAP". Newsfile Corp. (newsfilecorp.com). September 22, 2025.