1. Class action filed against Snap for misleading investor information. 2. Allegations indicate Snap's advertising revenue forecasts were overly optimistic. 3. Stock dropped 17% after Snap posted disappointing financial results. 4. Investors can join class action to recover losses. 5. Robbins LLP is leading the investigation into Snap's conduct.
The class action lawsuit stems from Snap's misleading information, which historically results in significant stock declines. Similar past instances, like those involving other tech companies, often led to long-term reputational damage and stock price drops.
The news directly affects Snap's market perception and could impact stock values due to legal liabilities, affecting investor decisions significantly.
Investor sentiment is likely to be heavily affected in the immediate aftermath of the lawsuit news. The short-term financial outlook usually reacts rapidly to negative news, especially regarding investor trust.
SAN DIEGO, Aug. 21, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Snap Inc. (NYSE:SNAP) securities between April 29, 2025 to August 5, 2025 (Case No. 2:25-CV-07844). Snap is a technology company best known for Snapchat, a visual messaging application.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Snap Inc. (SNAP) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the Company's expected advertising revenue and anticipated growth while emphasizing potential macroeconomic instability. In truth, Snap's optimistic reports of advertising growth and earnings potential fell short of reality as they relied far too heavily on Snap's ability to execute on its potential; Snap was already experiencing the ramifications of a significant execution error when defendants claimed a lack of visibility due to macroeconomic conditions.
Plaintiff alleges that on August 5, 2025, Snap announced its financial results for the second quarter of fiscal 2025, disclosing a deceleration in advertising revenue growth. The Company attributed the slowdown to "an issue related to our ad platform, the timing of Ramadan and the effects of the de minimis changes." On this news, the price of Snap's common stock declined from a closing market price of $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, a decline of over 17%
What Now: You may be eligible to participate in the class action against Snap Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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Contact: Aaron Dumas, Jr. Robbins LLP 5060 Shoreham Pl., Ste. 300 San Diego, CA 92122 (800) 350-6003 |
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SOURCE Robbins LLP