Snap, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Snap, Inc. (SNAP).

If you purchased or held Snap, Inc. securities between April 29, 2025 and August 5, 2025, you may be eligible to join this class action lawsuit and seek compensation for your losses.

About Snap, Inc.

Snap, Inc. is best known for its flagship product, Snapchat, a visual messaging app that enables users to share photos, videos, and messages. Founded in 2011 and headquartered in Santa Monica, California, Snap has grown to employ over 6,000 people, according to LinkedIn.

The company is also behind Lens Studio, an augmented reality (AR) platform, and Spectacles, its AR glasses. Snap’s business model relies heavily on advertising revenue, connecting brands and direct response advertisers to its large and active user base. As of early August 2025, Snap reported 460 million daily active users.

The Allegations

The class action lawsuit alleges that Snap, Inc. and certain executives made materially false and misleading statements, or failed to disclose critical information, about the company’s advertising revenue growth rate during the class period of April 29, 2025 to August 5, 2025.

According to the complaint, Snap failed to inform investors about a significant execution error in its ad platform in April 2025. This error caused advertising revenue growth to plummet from 9% in the first quarter to just 1% in April. Instead of disclosing this internal issue, Snap’s leadership allegedly attributed the slowdown to external macroeconomic factors, omitting the true impact of the ad platform problem.

On August 5, 2025, Snap revealed the truth during its second quarter earnings announcement, admitting to the ad platform issue and the resulting revenue drop. The market reacted swiftly: Snap’s stock price fell by 17.15%, dropping from $9.39 per share on August 5, 2025 to $7.78 per share on August 6, 2025. This sharp decline led to significant losses for investors.

Important Dates

• Class period: April 29, 2025 to August 5, 2025
• Complaint filed: August 21, 2025
• Lead plaintiff deadline: October 20, 2025

If you purchased Snap, Inc. securities during the class period, these dates are critical for preserving your rights.

Your Rights and Next Steps

If you bought or held Snap, Inc. securities between April 29, 2025 and August 5, 2025, you may have the right to participate in the class action lawsuit. Joining a class action allows investors to combine resources and pursue compensation for losses resulting from alleged securities fraud.

To become a lead plaintiff, you must file your motion by the October 20, 2025 deadline. The lead plaintiff acts on behalf of all class members and works closely with lawyers throughout the litigation. However, you do not need to become a lead plaintiff to benefit from any potential recovery: simply being a class member may entitle you to compensation if the lawsuit is successful.

Lawyers are ready to help answer your questions and guide you through the process. It’s important to act quickly to ensure your claim is preserved.

You May Be Entitled to Compensation

If you suffered financial losses as a result of purchasing Snap, Inc. securities during the class period, you may be eligible to recover damages. Completing the below form is the first step to joining the lawsuit and protecting your rights as an investor.

Lawyers are available to review your submission and provide guidance on your eligibility and next steps.