Snap ($SNAP) Misstatements on Advertising Revenue and Market Slowdown Case

The plaintiff has voluntarily dismissed the case, ending the lawsuit.

C.D. California

Court

2:25-cv-07844

Case number

04/29/2025

Class period Start

08/05/2025

Class period End

10/20/2025

Lead Plaintiff motion deadline

$SNAP investors filed a claim against Snap for overstating advertising revenue momentum, misrepresenting the causes of growth slowdown, and concealing internal execution failures.
After disclosing Q2 results that revealed a 1% growth rate in April and a flawed ad auction change, $SNAP fell 17% in one day.
$SNAP investors can join this case to be notified about potential recovery.
Case Details:

Between April 29, 2025, and August 5, 2025, Snap Inc. and its executives told investors that the company’s advertising growth remained strong and that headwinds were primarily macroeconomic. Internally, however, Snap was struggling with a flawed change to its ad auction system that caused campaigns to clear at lower prices, significantly weakening ad revenue growth. By April 2025, growth had slowed to just 1%, but this was not disclosed.

On August 5, 2025, Snap revealed that Q2 revenue growth had been hampered by internal execution failures, as well as timing effects from Ramadan and new regulatory changes. The next day, $SNAP dropped 17%, from $9.39 to $7.78, wiping out billions in market value.

Based on these events, $SNAP investors filed a claim against Snap Inc., alleging the company:
It misrepresented the strength of its advertising momentum.
It concealed material internal execution problems in its ad platform.
It artificially inflated its stock price by attributing slowdowns solely to external factors.
Investors argue Snap misled the market about its revenue quality and ad platform execution to sustain its valuation.

Case Type

US Securities Class Action

Case Status

Voluntary Dismissed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/05/2025

Filing date

08/21/2025

Lead Plaintiff Deadline

10/20/2025

Trusted by industry leaders

Endorsed by top professionals who trust our innovative solutions to drive impactful results.