Levi & Korsinsky, LLP announces the commencement of a class action lawsuit in the United States District Court for the Central District of California on behalf of Snap Inc. (NYSE: SNAP) shareholders who purchased shares (1) pursuant and/or traceable to Snap’s initial public offering on or about March 2, 2017 and/or (2) between March 2, 2017 and June 6, 2017.
The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to discloses that: (1) Snap’s reported user growth was materially false and misleading; and (2) as a result, Snap’s public statements were materially false and misleading at all relevant times.
On May 10, 2017, Snap disclosed disappointing user growth in its first quarterly report. For the quarter, Snap reported 166 million daily users, only 8 million more than the previous period and only 44 million more than the same period in the prior year. On this news, shares of Snap fell $4.93 per share or over 21% to close at $18.05 per share on May 11, 2017. On May 16, 2017, Bloomberg reported that a former Snap employee had 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 suffered a loss in Snap you have until July 17, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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