If you invested in Snap and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »
LEAD PLAINTIFF DEADLINE
On Feb. 6, 2024, one day after announcing it would reduce its job force by 10%, Snap reported disappointing Q4 and FY 2023 financial results and disappointing guidance for its March quarter, again unable to prove that it can be profitable on a GAAP basis. Quarterly revenues came in at about $1.36 billion, just a 5% year-over-year increase and missing analysts’ consensus. While the company said that its daily active user base grew 10% year-over-year to 414 million, that rate decelerated from prior quarters.
The financial press observed that Snap continued to struggle in the ad market, unlike its larger peers, which could show that advertisers may be giving up on Snapchat. One analyst reportedly observed “‘Snap has failed to show the market its ability to capitalize on resilient ad spending across different parts of the economy.’”
This news drove the price of Snap shares crashing as much as $6.21 lower, or down about 35%, during intraday trading on Feb. 7, 2024, wiping out over $8 billion in shareholder value. The news was also accompanied by several analysts’ price target cuts.
FREQUENTLY ASKED QUESTIONS ABOUT THE CASE
- What is the SNAP investigation about?
We are investigating whether Snap may have mislead investors about its ability to capture increased ad spending.
WHAT SHOULD I DO?
- I worked at SNAP. What should I do?
If you were an employee of SNAP, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or SNAP@hbsslaw.com.
- There are multiple law firms participating, do I need to contact all of them?
No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.
AM I ELIGIBLE?
- What is the threshold amount to be eligible? What are “substantial” losses?
The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.
CAN I PARTICPATE?
- Am I affected? What do I need to do to participate?
If you were an investor in SNAP, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.
- Can any SNAP investor participate?
In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.
- I bought on a non-U.S. Exchange. Can I participate?
No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.
- Am I included if I still hold my shares, or do I need to sell to participate?
Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.