Snap(US:SNAP) Globenewswire·2025-09-24 22:26Core Viewpoint - A securities class action lawsuit has been filed against Snap Inc. and certain senior executives, alleging misleading representations regarding its digital advertising platform and growth prospects, following a significant decline in stock price after Q2 financial results [1][4]. Group 1: Lawsuit Details - The lawsuit claims Snap provided false assurances about the effectiveness of its advertising platform and its revenue-driving potential, while actually facing negative impacts from a major "execution error" related to recent changes in the ad platform [4]. - The alleged misleading information became apparent on August 5, 2025, when Snap reported Q2 2025 results, missing analyst estimates for GAAP EPS and revealing a drastic slowdown in ad revenue growth from 9% in Q1 to just 1% in April [5]. Group 2: Financial Impact - Following the Q2 report, Snap's stock price dropped approximately 17% the next day due to the disclosed issues with its advertising platform and revenue growth [5]. Group 3: Legal Representation - Hagens Berman, a law firm, is investigating the case and encouraging investors who suffered losses to come forward, questioning whether Snap misled investors about the ad platform changes that led to revenue deceleration and share price decline [6].