Snap Inc. Faces Class Action Lawsuit Over Alleged Securities Fraud
Snap Inc. faces a class action lawsuit alleging securities fraud, with investors having until October 20, 2025 to seek lead plaintiff status. The lawsuit, filed by Levi & Korsinsky, LLP, claims Snap Inc. concealed a significant decline in advertising revenue growth.
Snap Inc. announced its second-quarter financial results on August 5, 2025, revealing a substantial slowdown in advertising revenue growth. This news sent the company's stock price plummeting. However, the lawsuit alleges that Snap Inc. had been concealing this deceleration since April 2025.
The lawsuit contends that Snap Inc. made misleading statements about its advertising revenue growth rate, which had dropped from 9% in the first quarter to a mere 1% by April. Investors who purchased Snap Inc. shares between April 29, 2025, and August 5, 2025, may have been misled by these statements.
As of October 1, 2025, there are no public reports of Snap Inc. being involved in any other class action securities lawsuits or scandals. The current lawsuit, filed by Levi & Korsinsky, LLP, seeks to represent investors who may have suffered losses due to Snap Inc.'s alleged securities fraud. Investors have until October 20, 2025, to request lead plaintiff status in the case.
