Lawyers representing investors in Snap Inc. filed a motion Wednesday to unseal a PowerPoint presentation that alleges that the company woefully misstated its growth metrics.
The attorneys are pursuing a class action securities fraud case against Snap, the parent company of Snapchat, and believe the presentation by fired employee Anthony Pompliano will assist in their case.
Pompliano filed a federal whistleblower suit in May, alleging that he was fired because he refused to participate in the duping of investors and advertisers.
Pompliano was on the job for a mere three weeks in 2015, but in that time he prepared a PowerPoint deck laying out what he believed were the key inaccuracies in the company’s numbers. That presentation was filed as a sealed exhibit to the federal suit.
In a motion to intervene in the suit, attorney Benjamin Heikali argues that his clients have a First Amendment right to access court records. The presentation, he argues, “is a matter of significant public concern given the high profile of Snap’s IPO.”
Snap has blasted Pompliano as a disgruntled former employee who was fired for “poor performance.” The company’s lawyers have also said his information is both inaccurate and badly out of date, and has sought to force him to resolve the case in arbitration.
Heikali’s firm, Faruqi & Faruqi, filed suit against Snap on July 10, alleging that the company used false and misleading growth data to defraud investors in its IPO. The presentation, Heikali argues, will “bolster the action’s allegations about what the defendants knew about Snap’s user metrics and when.”
The firm has filed many such class action cases, including recent ones against Tribune Media and Blue Apron.
Pompliano initially filed a heavily redacted complaint in state court in January, which left out most of the details of his tenure at the company. Snap later filed an unredacted version of the complaint, saying it had “nothing to hide.”