LOS ANGELES--(BUSINESS WIRE)--Goldberg Law PC, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Snap Inc. (“Snap” or the “Company”) (NYSE: SNAP) for violations of §10(b) and §20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, as well as §11 and §15 of the Securities Act of 1933.
Investors who purchased the Company’s shares (1) pursuant and/or traceable to Snap’s false and misleading Registration Statement and Prospectus, issued in connection with its initial public offering on or about March 2, 2017 (the “IPO”); and/or (2) on the open market between March 2, 2017 and May 15, 2017 inclusive (the “Class Period”), are encouraged to contact the firm before July 17, 2017, the lead plaintiff motion deadline.
If you are a shareholder who suffered a loss during Class Period, click here to participate.
In addition, we encourage you to contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067, at 800-977-7401, to discuss your rights free of charge. You can also reach us through the firm’s website at http://www.goldberglawpc.com/, or by email at info@goldberglawpc.com.
The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The Complaint alleges that during the Class Period, Snap made materially false and misleading statements about its reported user growth. On March 3, 2017, the Company completed its IPO, issuing 200 million shares of stock. On May 10, 2017, after the market closed, Snap released its first earnings report as a public company. The report revealed disappointing user growth for the Company’s messaging platform and a quarterly loss of $2.2 billion. The user growth was the slowest year-to-year user growth rate in at least two years. Following this news, Snap’s stock price dropped 21.45%, which caused investors harm. On May 16, 2017, Anthony Pompliano, a former Snap employee, filed a federal lawsuit against the Company for terminating his employment because he raised questions about false growth metrics being represented to the public in order to inflate Snap’s valuation prior to the IPO. Mr. Pompliano is also seeking whistleblower protection against retaliation by the Company.
Goldberg Law PC represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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