RADNOR, Pa., May 18, 2017 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Snap Inc. (NYSE: SNAP) ("Snap" or the "Company) on behalf of purchasers of the Company's common stock: (i) issued pursuant and/or traceable to Snap's initial public offering ("IPO") on or about March 2, 2017; and (ii) on the open market between March 2, 2017 and May 15, 2017, inclusive (the "Class Period").
Investors who purchased Snap common stock during the Class Period may, no later than July 17, 2017, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/snap-inc#join.
Snap investors who wish to discuss their legal rights or interests with respect to this action are encouraged to contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or (610) 667–7706, or via e-mail at email@example.com.
Snap provides technology and social media services, and is the parent company of the popular Snapchat mobile application. Snap completed its IPO on or around March 2, 2017, selling 230 million shares of stock to investors at $17.00 per share for gross proceeds of $3.91 billion.
The shareholder class action complaint alleges that Snap made a series of materially false and misleading statements to investors about the Company's reported user growth. As further detailed in the complaint, on May 10, 2017, Snap issued its first quarterly report as a public company, and disclosed disappointing user growth (the slowest year-to-year growth rate in at least two years) at the Company's Snapchat messaging platform. Following this news, shares of the Company's stock fell $4.93 per share, or over 21%, to close on May 11, 2017 at $18.05.
On May 16, 2017, Bloomberg reported that a former Snap employee filed a lawsuit against Snap, "claim[ing] he was fired after three weeks on the job for raising questions about allegedly false growth metrics [and] seeking whistleblower protection against retaliation by [the] company."
Snap shareholders may, no later than July 17, 2017, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP