Snap Inc. (SNAP) Faces Class Action Over Ad Platform, Investors Allege Misleading Statements -- Hagens Berman

SAN FRANCISCO, Sept. 16, 2025 /PRNewswire/ -- A securities class action lawsuit has been filed against Snap Inc. (NYSE: SNAP) and certain senior executives, alleging the company provided a misleading view of its digital advertising platform and growth prospects. The lawsuit, filed on behalf of investors who purchased shares between April 29, 2025, and August 5, 2025, follows a sharp decline in the company's stock price after its second-quarter financial results.

Hagens Berman urges investors in Snap who suffered significant losses to submit your losses now.

Class Period: Apr. 29, 2025 – Aug. 5, 2025
Lead Plaintiff Deadline: Oct. 20, 2025
Visit: www.hbsslaw.com/investor-fraud/snap
Contact the Firm Now: [email protected]
                                       844-916-0895

Snap Inc. (SNAP) Securities Class Action:

According to the complaint, Snap gave false assurances about the effectiveness of its ad platform and its potential to drive revenue. The lawsuit claims that the company was in fact experiencing significant negative consequences from a major "execution error" related to a recent change in its ad platform, but failed to disclose this crucial information to investors.

The alleged deception came to light on August 5, 2025, when Snap reported its Q2 2025 results. The company not only missed analyst estimates for its GAAP EPS but also disclosed that in its efforts to improve advertiser performance, it "shipped a change that caused some campaigns to clear the auction at substantially reduced prices." Snap also revealed a significant slowdown in ad revenue growth, from 9% in Q1 to just 1% in April. This news sent Snap's stock price tumbling by approximately 17% the following day.

Hagens Berman's Investigation on Behalf of Investors

Hagens Berman, a global plaintiffs' rights law firm, is investigating the case and urging investors who suffered substantial losses to come forward.

"We are investigating whether Snap misled investors by failing to be transparent about the ad platform changes that ultimately caused a sharp deceleration in revenue growth and a significant drop in share price," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Snap and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Snap case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Snap should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP