The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Snap Inc. (“Snap” or the “Company”) (NYSE: SNAP) securities from July 22, 2020 through October 21, 2021, inclusive (the “Class Period”). Investors have until January 10, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Snap, which was formerly known as Snapchat, Inc., 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.
On October 21, 2021, after the market closed, Snap reported its third-quarter 2021 earnings, which missed revenue expectations. CEO Evan Spiegel blamed the miss on Apple’s privacy-focused changes to iPhones and related devices, which he had previously praised. Spiegel said: “While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS.” On this news, Snap’s stock price declined by $19.97 per share, or approximately 26.6%, from $75.11 per share to $55.14 per share on October 22, 2021.
The lawsuit alleges throughout the Class Period, Defendants: (1) failed to disclose that Apple’s privacy changes would have, and were having, a material impact on the Company’s advertising business; (2) overstated Snap’s ability to transition its advertising with Apple’s privacy changes; and (3) overstated Snap’s commitment to privacy. As a result of the foregoing, Snap’s stock traded at artificially inflated prices throughout the Class Period. When the true details entered the market, the lawsuit claims that investors suffered damages.