RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Snap, Inc. (“Snap” or the “Company”) (NYSE: SNAP) common stock (i) issued pursuant and/or traceable to Snap’s initial public offering (“IPO”) on or about March 2, 2017; and (ii) on the open market between March 2, 2017 and May 15, 2017, inclusive (the “Class Period”).
Snap shareholders may, no later than July 17, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Snap and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com/case/snap.
Snap provides technology and social media services, and is the parent company of the popular Snapchat mobile application. Snap completed its IPO on or around March 2, 2017, selling 230 million shares of stock to investors at $17.00 per share for gross proceeds of $3.91 billion.
The complaint alleges that Snap made a series of materially false and misleading statements to investors about the Company’s reported user growth. As further detailed in the complaint, on May 10, 2017, Snap issued its first quarterly report as a public company, and disclosed disappointing user growth (the slowest year-to-year growth rate in at least two years) at the Company’s Snapchat messaging platform. Following this news, shares of the Company’s stock fell $4.93 per share, or over 21%, to close on May 11, 2017 at $18.05.
On May 16, 2017, Bloomberg reported that a former Snap employee 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.”
If you are a member of the class, you may, no later than July 17, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.