NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Snap Inc. (“Snap” or the “Company”) (NYSE:SNAP) of the July 17, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Snap stock or options pursuant to the Company’s IPO and/or throughout the Class Period and would like to discuss your legal rights, click here: www.faruqilaw.com/SNAP. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Snap securities pursuant to the Company’s initial public offering on or about March 2, 2017 (the “IPO”) and/or on the open market between March 2, 2017 and May 15, 2017 (the “Class Period”). The case, Erickson v. SNAP, INC. et al, No. 2:17-cv-03679 was filed on May 16, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Snap’s reported user growth was materially false and misleading; and (ii) as a result, Snap’s public statements were materially false and misleading.
Specifically, after market on May 10, 2017, Snap released its first quarterly report as a public company. In the Company’s report it disclosed dismal user growth regarding the Company’s Snapchat messaging platform. On this news, Snap’s share price fell from $22.98 per share on May 10, 2017 to a closing price of $18.05 on May 11, 2017—a $4.93 or a 21.45% drop.
In addition, on May 16, 2017, Bloomberg reported that a former Snap employee, Anthony Pompliano, had filed a lawsuit against the Company, “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.”
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Snap’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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