NEW YORK, Jan. 11, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Snap Inc. (“Snap” or the “Company”) (NYSE: SNAP) and certain of its officers, on behalf of shareholders who purchased Snap securities (1) pursuant and/or traceable to Snap’s Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about March 2, 2017 (the “IPO” or the “Offering”); and/or (2) on the open market between March 2, 2017 and August 10, 2017, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/snap .
This class action seeks to recover damages against Defendants for alleged violations of Federal Securities Laws.
On or around March 3, 2017, Snap completed its IPO, issuing 200,000,000 shares and raising net proceeds of approximately $3.91 billion.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding its business, operational and compliance policies. Specifically, Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (1) Snap’s reported user growth was materially false and misleading; and (2) consequently, Snap’s public statements were materially false and misleading at all relevant times.
On May 10, 2017, after-market hours, Snap revealed its first quarterly report as a public company, divulging disappointing user growth at its Snapchat messaging platform. For the quarter, Snap reported 166 million daily users, only 8 million more than in the previous period and only 44 million more than the same period in the prior year—Snapchat’s slowest year-to-year growth rate in at least two years. Following this news, Snap stock dropped $4.93 per share, or 21.45%, to close at $18.05 on May 11, 2017.
On May 16, 2017, Bloomberg announced that a former Snap employee, Anthony Pompliano, had filed a lawsuit against Snap, “claim[ing] he was fired after three weeks on the job for raising questions about allegedly false growth metrics [and] seeking whistleblower protection against retaliation by [the] company.” Following this news, Snap stock dropped $0.02 per share, or 0.1%, to close at $20.72 on May 16, 2017.
By the time Snap announced its second quarter results on August 10, 2017, Snap’s stock was trading at only $13.77. When the Company announced that yet again, growth in key user engagement metrics had been stagnant, it was clear that the trend that had been concealed by Snap in the Registration Statement—Facebook’s eclipsing Snap’s DAU and snapping up its advertisers—had fully materialized. Snap was not going to be the social media powerhouse investors had been led to believe it would be. Moreover, in a complete reversal of Snap’s claim that its user engagement metrics reflected organic growth, an analyst on the earnings call queried whether Snap was “growth hacking” notwithstanding Defendant Spiegel and Defendant Kahn’s explicit statements that Snap did not engage in such practices. This time, in an about face, Spiegel confessed that push notifications, i.e. growth hacking “it’s important for our business.”
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/snap or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Snap you have until January 31, 2019 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
