Snap(US:SNAP) Globenewswire·2025-10-13 20:44Core Insights - 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][2] Legal Issues - A federal securities class action lawsuit has been filed against Snap and certain senior executives, alleging that the company misrepresented the performance and growth prospects of its digital advertising platform [2][6] - The lawsuit claims that Snap experienced significant negative consequences from an "execution error" related to a recent change in its ad platform, which was not disclosed to investors during the Class Period [6][11] - The alleged deception became apparent on August 5, 2025, when Snap reported Q2 2025 results, admitting to a change that caused campaigns to clear at substantially reduced prices, leading to a slowdown in ad revenue growth from 9% in Q1 to just 1% in April [7][11] Class Action Details - The class action lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025 [8][10] - Hagens Berman, a shareholder rights firm, is investigating the claims and encourages affected investors to come forward [9][12]