Snap(US:SNAP) GlobeNewswire News Roomยท2025-09-03 22:19Core Viewpoint - A securities class action lawsuit has been filed against Snap Inc. and its senior executives, alleging that the company misled investors regarding its digital ad platform and growth prospects, following disappointing Q2 2025 financial results that caused a significant drop in share price [1][3]. Company Overview - Snap Inc. operates a visual messaging application and subscription services, generating most of its revenue from advertising on its flagship product, Snapchat [2]. Financial Performance - Snap reported a significant deceleration in ad revenue growth, dropping from 9% in Q1 2025 to just 1% in April 2025, primarily due to issues with its ad platform changes [4]. - The company missed consensus estimates for its Q2 GAAP EPS, leading to a 17% decline in share price the following day [4][5]. Legal Proceedings - The lawsuit seeks to represent investors who acquired Snap securities between April 29, 2025, and August 5, 2025, with a lead plaintiff deadline set for October 20, 2025 [2]. - Hagens Berman is investigating when Snap's management became aware of the ad platform issues and whether this information should have been disclosed to investors earlier [6]. Investor Actions - Investors who suffered significant losses are encouraged to submit their claims, and whistleblowers with non-public information regarding Snap are invited to assist in the investigation [7].