Snap Investors File Class Action Lawsuit Over Alleged Securities Fraud

Snap investors who suffered losses as a result of allegedly misleading statements about the company's advertising revenue growth rate are now eligible to join a class action lawsuit. According to the complaint, Snap's executives provided positive statements while concealing facts about the company's decline in revenue growth. The lawsuit seeks to recover losses for investors who were affected between April 29, 2025, and August 5, 2025.

Key Takeaways:

• Snap investors who were negatively affected by the alleged securities fraud can join a class action lawsuit.
• The lawsuit claims that Snap's executives provided misleading statements about the company's advertising revenue growth rate.
• The decline in revenue growth was allegedly concealed by executives, who attributed the slowdown to issues related to the ad platform, Ramadan, and 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.
• The stock price fell from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, a decline of about 17.15%.
• The lawsuit seeks to recover losses for investors who were harmed by Snap's alleged securities fraud.
• Levi & Korsinsky, a law firm with expertise in complex securities litigation, is representing the investors.

Statistics:

• 17.15% decline in the price of Snap's common stock on August 6, 2025.
• $9.39 per share closing market price on August 5, 2025.
• $7.78 per share closing market price on August 6, 2025.
• April 29, 2025, to August 5, 2025, was the relevant time frame for the alleged securities fraud.

Sources:

• [1 - Levi & Korsinsky, LLP]
• Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500