Analyst Rating Hits Snap (SNAP) Shares, Adding Pressure to Company Already Facing Ad Platform Lawsuit, According to Hagens Berman

Core Viewpoint - Snap Inc. shares declined by 6.6% following Mizuho's initiation of coverage with a Neutral rating and a $9 price target, describing the company as a "show-me story" due to weak feedback from its advertising channels [1] Group 1: Legal Issues - A federal securities class action lawsuit has been filed against Snap and certain senior executives, alleging that the company misrepresented its digital advertising platform's performance and future growth prospects [2] - The lawsuit claims that Snap faced significant negative consequences from a major "execution error" related to a recent change in its ad platform, which was not disclosed to investors during the Class Period [6] - The alleged deception became apparent on August 5, 2025, when Snap reported Q2 2025 results, admitting that a change caused campaigns to clear the auction at substantially reduced prices, leading to a slowdown in ad revenue growth from 9% in Q1 to just 1% in April [7] Group 2: Investor Actions - The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025 [8] - Hagens Berman, a shareholder rights firm, is investigating the claims and encourages investors who suffered losses to come forward, focusing on whether management concealed the operational problem [11] - Whistleblowers with non-public information regarding Snap are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program [13]