StockNews.AI
SNAP
StockNews.AI
1 min

Snap Inc. (SNAP) Sued: Lawsuit Alleges Ad Platform ‘Execution Error' Concealed From Investors, According to Hagens Berman

1. Snap faces a class action lawsuit for misleading investors. 2. Claims involve false assurances about digital ad platform's performance. 3. Stock dropped 17% after Q2 results revealed execution errors. 4. Lawsuit period covers from April 29 to August 5, 2025. 5. Investors are encouraged to report substantial losses for the investigation.

6m saved
Insight
Article

FAQ

Why Very Bearish?

The lawsuit could lead to significant financial penalties for Snap, similar to past cases with other tech companies, affecting stock sentiment and value.

How important is it?

The lawsuit's potential financial implications and visibility in the media have high significance for SNAP investors.

Why Short Term?

Immediate investor concern due to the lawsuit and past stock price drop suggests short-term negative effects on stock performance.

Related Companies

METAGOOGLTWTR
SAN FRANCISCO, Sept. 29, 2025 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been initiated against Snap Inc. (NYSE: SNAP) and certain senior executives. The complaint alleges the company presented a misleading picture of its digital advertising platform's performance and future growth prospects to investors. The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025. This legal action follows a steep drop in Snap's stock price after the company released its second-quarter financial results. Video: https://youtu.be/0cFMfKT71ec Hagens Berman urges investors in Snap who suffered significant losses to submit your losses now. Class Period: Apr. 29, 2025 – Aug. 5, 2025Lead Plaintiff Deadline: Oct. 20, 2025Contact the Firm Now: Phone: 844-916-0895Email: SNAP@hbsslaw.comWebsite Form: www.hbsslaw.com/investor-fraud/snap Snap Inc. (SNAP) Securities Class Action: The lawsuit, which seeks to hold the company accountable for investor losses, centers on claims that Snap gave false assurances about the effectiveness and growth potential of its advertising platform. The complaint alleges the company experienced significant negative consequences from a major “execution error” related to a recent change in its ad platform but failed to disclose this crucial information to investors throughout the Class Period. The alleged deception came to light on August 5, 2025, when Snap reported its Q2 2025 results. The company not only missed analyst estimates for its GAAP EPS but also admitted that in an effort to improve advertiser performance, it “shipped a change that caused some campaigns to clear the auction at substantially reduced prices”. This admission confirmed a significant slowdown in ad revenue growth, which had decelerated from 9% in Q1 to just 1% in April. News of the failure caused Snap’s stock price to tumble by approximately 17% the following day. Hagens Berman’s Investigation on Behalf of Investors Hagens Berman, a global plaintiffs’ rights law firm, is actively investigating the alleged claims and urges investors who suffered substantial losses to come forward. “We’re investigating if the company knew about this major ‘execution error’ and the corresponding deceleration in revenue growth but chose to delay disclosure, thereby misleading the market,” said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in Snap and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now » If you’d like more information and answers to frequently asked questions about the Snap case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Snap should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email SNAP@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895 A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0ad0a1a0-eb68-4f5f-9402-98622c67dda9  A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c636521d-0437-4c90-9360-c9f244a6d7a6 Snap Inc. (SNAP) Faces Class Action Over Ad Platform A securities class action lawsuit has been filed against Snap Inc. (NYSE: SNAP) and certain senior e...

Related News