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 claims that the company issued misleading statements about its advertising revenue growth rate, which led to a decline in stock price. On August 5, 2025, Snap announced its financial results for the second quarter of fiscal 2025, revealing a deceleration in advertising revenue growth. The company attributed the slowdown to an issue related to its ad platform and other factors. Following this news, Snap's stock price plummeted by 17.15% in a single day, from $9.39 to $7.78 per share. If you suffered a loss in Snap stock during this period, you may be eligible to seek a recovery.

Key Takeaways:

  • A class action lawsuit was filed against Snap Inc. alleging securities fraud between April 29, 2025, and August 5, 2025.
  • The lawsuit claims that Snap issued misleading statements about its advertising revenue growth rate, leading to a decline in stock price.
  • Snap attributed the slowdown in advertising revenue growth to an issue related to its ad platform and other factors.
  • The company's stock price declined dramatically after the announcement, from $9.39 to $7.78 per share, a decline of 17.15% in one day.
  • Levi & Korsinsky, LLP, a nationally-recognized securities litigation firm, is representing investors in the case.
  • The firm has a track record of winning high-stakes cases and has been ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States for seven years in a row.
  • The lawsuit is seeking to recover losses of shareholders who were adversely affected by Snap Inc.'s alleged securities fraud.

Statistics:

  • April 29, 2025: Date when Snap Inc. allegedly began issuing misleading statements about its advertising revenue growth rate.
  • August 5, 2025: Date when Snap announced its financial results for the second quarter of fiscal 2025, revealing a deceleration in advertising revenue growth.
  • $9.39: Closing market price of Snap's common stock on August 5, 2025.
  • $7.78: Closing market price of Snap's common stock on August 6, 2025, a decline of 17.15% in one day.

Sources:

  • [Newsfile Corp. - October 14, 2025](https://www.newsfilecorp.com/release/270364)
  • [Levi & Korsinsky, LLP](https://zlk.com/)