Snap Inc. Faces Class Action Lawsuit Alleging Misleading Advertising Claims

Snap Inc. Faces Class Action Amid Claims of Misleading Statements

In a significant legal development, Snap Inc. (NYSE: SNAP) is currently in the crosshairs of a securities class action lawsuit filed by investors. The lawsuit accuses the company and certain senior executives of providing misleading information about their digital advertising platform and its growth prospects.

Claims and Allegations

The lawsuit pertains to a period in which investors who purchased shares between April 29, 2025, and August 5, 2025, alleged that Snap provided a distorted view of its capabilities. Following the release of its second-quarter earnings, the company reported a sharp plunge in stock prices, prompting investors to take action.

As detailed in the complaint, Snap allegedly gave investors false assurances regarding the effectiveness of its ad platform, suggesting it would facilitate revenue growth. However, insiders indicate the company faced serious negative ramifications due to a major “execution error” related to a recent ad platform change that went undisclosed to investors.

This crucial information came to light on August 5, 2025, when Snap's Q2 results were revealed. Contrary to analysts’ expectations, Snap not only underperformed in GAAP EPS, but also disclosed a significant slowdown in ad revenue growth—from 9% in Q1 to merely 1% in April. The immediate aftermath of this revelation saw Snap’s stock price nosedive nearly 17% the following day, further highlighting investor concerns regarding the company’s operational transparency.

Investigative Pursuit by Hagens Berman

Hagens Berman, recognized globally as a leading plaintiffs' rights law firm, is actively investigating the situation in cooperation with concerned investors. Reed Kathrein, a partner at Hagens Berman, emphasized: “We are examining whether Snap misled investors about adverse changes to their ad platform that led to both a sharp slowdown in revenue and a drastic drop in stock value.”

The firm encourages investors who have incurred considerable losses due to Snap’s actions to come forward and submit their claims before the impending deadline on October 20, 2025. Anyone who invested in Snap within the class period and suffered significant financial losses is urged to act promptly. For those looking for detailed information about the ongoing investigation or how to take part in the class action, they can visit Hagens Berman’s website or directly contact the firm.

Support for Whistleblowers

In a related note, the firm encourages whistleblowers with non-public information about Snap's operations to come forward as part of their ongoing investigation. The SEC Whistleblower program reinforces the importance of their testimony by offering rewards that may reach up to 30% of successful recoveries made by the SEC.

About Hagens Berman

Hagens Berman proudly stands as a formidable entity in complex litigation, focusing on holding corporations accountable for wrongdoing. Their dedication to representing investors, whistleblowers, consumers, and more has led them to recover over $2.9 billion in settlements for clients thus far. To stay updated on similar cases or issues regarding corporate accountability, the firm encourages following their social media channels.

In conclusion, the circumstances surrounding Snap Inc.'s class action lawsuit reveal a concerning narrative about transparency and corporate responsibility in the digital advertising space. Investors are urged to monitor the developments closely while also considering their options regarding involvement in the ongoing legal proceedings.