Snap Inc. (SNAP) Faces Securities Class Action Amid Impact of Ad Platform Changes -- Hagens Berman

SAN FRANCISCO, Sept. 4, 2025 /PRNewswire/ -- A securities class action lawsuit has been filed against Snap and senior executives, alleging the digital communication company misled investors about its digital ad platform and growth prospects. The lawsuit, which seeks to represent investors who purchased or otherwise acquired Snap Inc. (NYSE: SNAP) securities between April 29, 2025 and August 5, 2025, follows Snap's disappointing Q2 2025 financial results, which led to a significant decline in its share price.

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:

Snap offers a visual messaging application and subscription services. The company generates substantially all its revenue from advertising revenue generated from the display of advertisements on its flagship product -- Snapchat.

The complaint challenges Snap's assurances about the ongoing benefits of its ad platform improvements as a driver of revenue growth. The lawsuit alleges that Snap created the false impression that it had reliable information about its expected advertising revenue and its growth prospects while, in truth, the company was experiencing adverse growth ramifications due to a significant execution error related to its ad platform.

Investors allegedly learned the truth on August 5, 2025, when Snap reported its Q2 2025 financial results. The company missed consensus estimates for its Q2 GAAP EPS and said "[u]nfortunately, in our efforts to improve advertiser performance, we shipped a change that caused some campaigns to clear the auction at substantially reduced prices." The company further revealed that it saw ad revenue growth significantly decelerate from 9% in Q1 to just 1% in April 2025 in large part due to its ad platform changes.

This revelation drove the price of Snap shares about 17% lower the next day.

Hagens Berman's Investigation on Behalf of Investors

Hagens Berman is now investigating when Snap's management knew about ad platform issues and whether this adverse information should have been disclosed to investors earlier.

"We're investigating whether Snap may have misled investors about now-admitted problems with its ad platform changes and the negative effect on growth," 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