SNAP Inc, Investor Class Action Lawsuit for Securities Fraud Violations

Описание: A class action lawsuit has been filed on behalf of those who purchased or acquired Snap Inc. (“Snap”) (NYSE: SNAP) securities between July 22, 2020 and October 21, 2021, inclusive (the “Class Period”).

Snap operates as a camera company, which offers the social media application Snapchat, an eyewear product that connects with Snapchat and captures video Spectacles, and advertising products including AR (augmented reality) and Snap ads. In June 2020, as part of an ongoing privacy push, Apple Inc. (“Apple”), which developed and maintains the popular mobile operating system, iOS, for its mobile devices, publicly announced new data privacy features for iOS. In April 2021, Apple released the new data privacy features for iOS.

The Class Period commences on July 22, 2020, when Snap filed its quarterly report on a Form 10-Q for the period ended June 30, 2020. In the Form 10-Q, Snap stated, “Apple’s upcoming iOS update . . . may impose heightened restrictions on our access and use of user data, may reduce the quantity and quality of the data and metrics that can be collected or used by us and our partners.” The Form 10-Q continued, “The impact of these proposed changes on the overall mobile advertising ecosystem, our business, and the developers, partners, and advertisers within our community is uncertain.” Throughout the Class Period, Snap downplayed the risks of the impact that Apple’s privacy changes would have, and failed to inform investors that the privacy changes were impacting Snap’s advertising business.

The truth emerged on October 22, 2021, when Snap filed its third quarter 2021 report for the period ending September 30, 2021 on a Form 10-Q, disclosing Snap’s weaker-than-expected revenue and weaker-than-expected guidance because of its advertising business, due to Apple’s privacy changes. The Form 10-Q disclosed that the risks of heighted restrictions on Snap’s access and use of user data due to Apple’s privacy update had materialized. Specifically, the Form 10-Q stated, “These changes have adversely affected our targeting, measurement, and optimization capabilities, and in turn affected our ability to measure the effectiveness of advertisements on our services. This has resulted in, and in the future is likely to continue to result in, reduced demand and pricing for our advertising products and could seriously harm our business.”

Following this news, Snap’s stock price fell $19.97 per share, or 26%, to close at $55.14 per share on October 22, 2021.

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Apple’s privacy changes would have, and were having, a material impact on Snap’s advertising business; (2) Snap overstated its ability to transition its advertising with Apple’s privacy changes; (3) Snap knew of, but downplayed, the risks of the impact that Apple’s privacy changes had on Snap’s advertising business; (4) Snap overstated its commitment to privacy; and (5) as a result of the foregoing, the defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.