Class Action Lawsuit Against Snap Inc. Over Securities Fraud: Deadline Approaches

Class Action Lawsuit Against Snap Inc.

In a significant development for investors of Snap Inc. (NYSE: SNAP), the law firm Levi & Korsinsky, LLP has announced a class action securities lawsuit. This legal action aims to seek compensations for individuals adversely impacted by alleged securities fraud that occurred between April 29, 2025, and August 5, 2025.

Lawsuit Overview

The core issue at hand revolves around Snap's purported failure to transparently communicate the state of its advertising revenue growth. The lawsuit accuses the defendants of issuing overwhelmingly positive statements, despite having knowledge of materially false and misleading information regarding Snap's financial health. Specifically, it is alleged that the company concealed a drastic decline in growth rates—from 9% in the first quarter of 2025 to a mere 1% by April—caused by internal execution issues and operational challenges.

This decline in growth rates was ultimately disclosed in Snap’s second quarter fiscal results announced on August 5, 2025, when the company cited adverse factors impacting their performance. This announcement triggered a steep drop in Snap’s stock price, plummeting from $9.39 to $7.78 per share in just one day, a staggering loss of about 17.15%.

What Investors Need to Know

Investors who experienced losses during the specified period are encouraged to step forward and request the court to appoint them as lead plaintiff by October 20, 2025. Even those who do not wish to serve as lead plaintiff can still participate in any potential recovery resulting from the lawsuit at no out-of-pocket cost.

Levi & Korsinsky has a notable track record, having secured substantial settlements for their clients in complex securities litigation. Their extensive experience has made them a trusted name in the industry, repeatedly ranking as one of the top securities litigation firms in the United States.

If you are a Snap investor impacted by these events, it’s crucial to reach out to Levi & Korsinsky for a detailed discussion about your rights and possible legal recourse. They can be contacted by email at [email protected] or by phone at (212) 363-7500.

Conclusion

As the deadline approaches, affected investors are urged to take action to safeguard their rights and explore their options within this class action lawsuit. The outcome of this case holds significant implications not only for Snap's immediate future but also for the accountability standards expected from publicly traded companies. Keeping an eye on developments in this lawsuit will be crucial for all stakeholders involved, reinforcing the importance of transparency in financial reporting.