According to the law firm press release, Snap Inc. is a camera company that provides technology and social media services. The Company develops mobile camera application products and services that allow users to send and receive photos, drawings, text, and videos. Snap serves customers worldwide.
On or about March 3, 2017, the Company completed its IPO, issuing 200,000,000 shares and raising net proceeds of approximately $3.91 billion.
Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Snap’s reported user growth was materially false and misleading; and (ii) as a result, Snap’s public statements were materially false and misleading at all relevant times.
On May 10, 2017, post-market, Snap issued its first quarterly report as a public company, disclosing disappointing user growth at the Company’s Snapchat messaging platform. For the quarter, Snap reported 166 million daily users, only 8 million more than in the previous period and only 44 million more than the same period in the prior year—Snapchat’s slowest year-to-year growth rate in at least two years.
On this news, Snap’s share price fell $4.93, or 21.45%, to close at $18.05 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.”
On this news, Snap’s share price fell $0.02, or 0.1%, to close at $20.72 on May 16, 2017.
On September 18, 2017, the Court issued an Order appointing Lead Plaintiff and Counsel and Consolidating Cases. The Consolidated Cases shall be identified as: In Re Snap Inc. Securities Litigation. Lead Plaintiff filed a consolidated Complaint on November 1. On December 1, Defendants filed a Motion to Dismiss the consolidated Complaint. On June 7, 2018, the Court issued an Order denying Defendants' Motion to Dismiss. Plaintiffs were given 90 days to file a Motion for class certification. On June 18, Defendants filed a Notice of Motion and Motion to certify an interlocutory appeal of the Court's Order denying Defendants' Motion to Dismiss. On August 8, the Court denied Defendants' motion for interlocutory appeal. On September 12, Lead Plaintiff voluntarily dismissed the Director Defendants. On September 18, Lead Plaintiff voluntarily dismissed the Underwriter Defendants.
On January 10, 2019, the Court reopened the Lead Plaintiff appointment process. On April 1, the Court issued an Order appointing Lead Plaintiff and Lead Counsel. Lead Plaintiff filed a second consolidated amended Complaint on May 29.