1. Snap Inc. faces a class action lawsuit for alleged securities fraud. 2. Stock price fell 17.1% after disappointing Q2 2025 results. 3. Lawsuit claims misleading statements regarding advertising revenue growth. 4. Investors have until October 20, 2025, to join the lawsuit. 5. The legal action stems from financial transparency issues.
Historically, lawsuits have negatively affected stock prices. Snap's stock dropped significantly post-earnings announcement, signaling investor distrust.
The lawsuit and its implications on Snap’s financial stability can significantly influence investor sentiment.
The immediate impact from legal proceedings and investor sentiment typically unfolds quickly. Similar past events have led to swift stock reactions.
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Snap Inc. ("Snap" or the "Company") (NYSE: SNAP) securities between April 29, 2025 to August 5, 2025, inclusive (the "Class Period"). Snap investors have until October 20, 2025 to file a lead plaintiff motion.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN SNAP INC. (SNAP), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On August 5, 2025, Snap released its second quarter fiscal 2025 financial results, disclosing a deceleration in advertising revenue growth due to "an issue related to [its] ad platform, the timing of Ramadan and the effects of the de minimis changes."
On this news, Snap's stock price fell $1.61, or 17.1%, to close at $7.78 per share on August 6, 2025, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) 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; (2) Snap was already experiencing the ramifications of a significant execution error when Defendants' claimed a lack of visibility due to macroeconomic conditions; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Snap securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com,
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250826172021/en/
Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com