PHILADELPHIA, Jan. 22, 2019 /PRNewswire/ -- The law firm
of McEldrew Young announces a new deadline in a securities fraud
class action lawsuit filed against Snap, Inc. (NYSE: SNAP) ("Snap")
on behalf of purchasers of Snap securities between
March 2, 2017 and August 10, 2017, inclusive (the
"Class Period") including those who purchased Snap
common stock traceable to the registration statement and prospectus
issued in connection with Snap's March 3,
2017 initial public offering. The class action is
pending in the United States
District Court for the Central District of California before the Honorable Judge
Stephen V. Wilson and is captioned
In re Snap Inc. Securities Litigation, Case No.
17-cv-03679-SVW-AGR.
Investors who purchased Snap securities during the Class
Period may, no later than January 31,
2019, seek to be appointed as a Lead Plaintiff
representative of the class. For additional information or to learn
how to participate in this litigation please visit:
Snapchat Securities Fraud Class Action
Snap is a self-described "camera company" whose primary product
is a free mobile chatting application, Snapchat, and it generates
revenue by growing user engagement of Snapchat and delivering
advertisements to Snapchat users. On March
2, 2017, Snap raised $3.4
billion in its initial public offering ("IPO") by selling
200 million shares at a price of $17.00 each. The complaint alleges that Snap made
false and misleading statements and omissions in Snap's IPO
offering materials and during the Class Period about: (i) the
impact of competition from Instagram, a Facebook subsidiary, on
Snap's core business, including Snap's Daily Active Users ("DAU");
(ii) the existence and substance of a lawsuit challenging the
metrics by which investors and advertisers valued Snap's platform,
and internal control deficiencies at Snap; and (iii) Snap's use of
"growth hacking," a technique use to artificially inflate DAU
numbers.
The Class Period ends on August 10,
2017, when Snap reported its financial results for the
second quarter of 2017, which included DAU growth of only 4%
quarter-over-quarter, from 166 million in Q1 2017. This disclosure
revealed the relevant truth concealed and/or obscured by
Defendants' prior misstatements and omissions, which created the
false impression that Snap expected its user growth to continue
unabated and that the risk of Instagram's clone features directly
competing against Snap was a hypothetical risk rather than a
concealed reality. As a direct and proximate result of this
corrective disclosure of Defendants' fraud, Snap's share price
declined $1.94 per share, or
approximately 14%, from a closing price of $13.77 on August 10,
2017, to close at $11.83 per
share on August 11, 2017.
Snap investors may, no later than January 31, 2019, seek to be appointed as
a Lead Plaintiff representative of the class through McEldrew
Young, or other counsel, or may choose to do nothing and remain an
absent class member. A Lead Plaintiff is a representative
party who acts on behalf of all class members in directing the
litigation. In order to be appointed as a Lead Plaintiff, the
Court must determine that the class member's claim is typical of
the claims of other class members, and that the class member will
adequately represent the class. Your ability to share in any
recovery is not affected by the decision of whether or not to serve
as a lead plaintiff.
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SOURCE McEldrew Young