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The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against Snap Inc.. The action charges Snap with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s advertising business. As a result of Snap’s materially misleading statements made to the market, Snap investors have suffered significant losses.
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at info@ktmc.com
SNAP’S ALLEGED MISCONDUCT
Snap is an American camera and social media company that develops and maintains technological products and services such as the social media application “Snapchat,” an eyewear product that connects with Snapchat and captures video Spectacles, and advertising products including AR (augmented reality) and Snap ads.
In its filings with the U.S. Securities and Exchange Commission, Snap admits that it generates substantially all of its revenues by offering various advertising products on Snapchat and that it monetizes its business primarily through advertising based on its user data. In June 2020, as part of an ongoing privacy push, Apple Inc. (“Apple”), which developed and maintains the popular mobile operating system, iOS, for its mobile devices, publicly announced new data privacy features for iOS. Following this announcement, Snap continuously downplayed and misled investors regarding the impact that Apple’s new data privacy features would have on its business. In April 2021, Apple released the new data privacy features for iOS.
The truth emerged on October 22, 2021, when Snap filed its third quarter 2021 report for the period ending September 30, 2021 on a Form 10-Q, disclosing Snap’s weaker-than-expected revenue and weaker-than-expected guidance because of its advertising business, due to Apple’s privacy changes. In the report, CEO Evan Spiegel disclosed that Snap’s advertising business had allegedly been affected by recent privacy changes introduced by Apple in its iOS mobile operating system in June and July. Specifically, Spiegel claimed that “the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS.” Following this news, Snap’s stock price fell $19.97 per share, or 26%, to close at $55.14 per share on October 22, 2021.
WHAT CAN I DO?
Snap investors may, no later than January 10, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Snap investors who have suffered significant losses to contact the firm directly to acquire more information.
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com
