You will be redirected back to your article in seconds

Snap Inc. Hit With Securities Class Action Alleging Inflated Growth

A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth.

Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago.

The suit notes that Snap’s stock price plunged $4.93, or 21.45%, after its first quarterly report last week showed disappointing user growth. The suit also cites the claims of Anthony Pompliano, a former growth lead for Snapchat, who has filed his own lawsuit alleging that the company was using inflated metrics during his brief tenure there in 2015.

A Snap Inc. spokesman issued this response: “Lawsuits like this are not uncommon and we are focused on growing our business.”

Snap has rebounded somewhat since its precipitous drop after last week’s report. The stock closed the day on Tuesday at $20.78, up $2.73 a share from its low last Thursday.

The Pomerantz law firm filed a similar suit last year against Twitter, alleging that the company had likewise made misleading statements about its user metrics. That case was subsequently consolidated with a similar case and the firm of Motley Rice was named lead counsel for the plaintiffs. Twitter recently filed a motion to dismiss.

More Biz

  • Harvey Weinstein ousted

    Weinstein Co. Sued by Lindt Chocolatier Over Canceled Golden Globes Party

    A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth. Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago. The suit notes that Snap’s stock price […]

  • Pandora Shares Surge as Fourth-Quarter Subscription

    Pandora Shares Surge as Fourth-Quarter Subscription Revenue Climbs 63%

    A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth. Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago. The suit notes that Snap’s stock price […]

  • Eric Schneiderman

    Weinstein Co. Deal Moving Ahead After 3-Hour Meeting With Attorney General

    A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth. Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago. The suit notes that Snap’s stock price […]

  • Farrah Abraham 'Single AF' TV show

    Farrah Abraham Claims MTV 'Sex-Shamed' Her for Doing Porn

    A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth. Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago. The suit notes that Snap’s stock price […]

  • Ryan Reynolds Detective Pikachu

    Ryan Reynolds Buys Gin Company

    A law firm filed a securities class action suit on Tuesday against Snap Inc., alleging the company made false and misleading statements about its user growth. Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago. The suit notes that Snap’s stock price […]

More From Our Brands

Access exclusive content