Snap Inc (NYSE:SNAP) Investor Securities Class Action Lawsuit 05/16/2017

If you purchased shares of Snap Inc (NYSE:SNAP), you have certain options and for certain investors are short and strict deadlines running. Deadline: July 17, 2017. NYSE:SNAP investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Snap
Case Name: 
Snap Shareholder Class Action Lawsuit 05/16/2017
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: SNAP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/16/2017
Class Period Begin: 
03/02/2017
Class Period End: 
05/15/2017
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
07/17/2017
Summary: 

May 16, 2017 (Shareholders Foundation) - An investor in shares of Snap Inc (NYSE:SNAP) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Snap Inc in connection with certain allegedly false and misleading statements made between March 2, 2017 and May 15, 2017.

According to the complaint the plaintiff alleges on behalf of investors, who purchased Snap Inc (NYSE:SNAP) securities or otherwise acquired Snap Inc (NYSE:SNAP) securities pursuant and/or traceable to Snap’s initial public offering on or about March 2, 2017 (the “IPO” or the “Offering”), and/or on the open market between March 2, 2017 and May 15, 2017, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that Snap’s reported user growth was materially false and misleading, and that as a result, Snap’s public statements were materially false and misleading at all relevant times.

Snap Inc., formerly Snapchat, Inc., is a camera company. Snap Inc reported that its annual Total Revenue rose from $58.66 million in 2015 to $404.48 million in 2016 and that its Net Loss increased from $372.89 million in 2015 to $514.64 million in 2016. Snap Inc went public in March 2017 and sold 200 million shares of stock in its initial public stock offering (the "IPO"), raising $3.4 billion in new capital. Snap's stock reached as a high of $29.44 on March 3, 2017

On May 10, 2017 Snap Inc reported its first quarter 2017 results nd revealed a massive quarterly loss of $2.2 billion. Snap Inc realized an enormous amount of stock-based compensation to employees which accounted for nearly $2 billion of that total. However, even after subtracting stock-based compensation, Snap Inc still lost more money than expected in the first quarter. The Company reported an adjusted EBITDA loss of $188.2 million, more than its revenue total and higher than the average analyst estimate of $180.7 million loss. Snap Inc's Q1 revenue was $149.6 million lower than the $158 million analyst consensus estimate.
Shares of Snap Inc (NYSE:SNAP) declined to as low as $17.59 per share on May 11, 2017.

On May 16, 2017, NYSE:SNAP shares closed at $20.78 per share.