Snap Inc. $65 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Snap Inc. publicly traded securities or call options, or sold Snap Inc. put options between Feb. 5, 2021, and Oct. 21, 2021, may be eligible to claim a cash payment from a class action settlement.

Snap Inc. agreed to pay $65 million to settle a class action lawsuit alleging it and certain executives made false and misleading statements about the impact of Apple Inc.’s privacy changes and the implementation of SKAdNetwork on Snap’s advertising business, which allegedly inflated the price of Snap securities during the class period.

Who can file a claim?

The settlement class includes:

• Investors who purchased or otherwise acquired Snap Inc. publicly traded securities or call options between Feb. 5, 2021, and Oct. 21, 2021, inclusive
• Investors who sold Snap Inc. put options during the same period
• Investors whose transactions allegedly caused them financial harm

Additional details

• Both individuals and entities can be class members.
• The actual beneficial owner or a legal representative must submit the claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide documentation proving their authority.
• Brokers, custodians and nominees who purchased or acquired Snap securities for the benefit of others must notify beneficial owners and may request reimbursement for reasonable notice expenses.

How much can class members get?

The total settlement fund is $65 million. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The type, timing and volume of Snap securities transactions
• Court-approved deductions for attorneys’ fees, expenses and administration costs

The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation.

• Estimated average recovery before deductions:
• Approximately $0.14 per allegedly damaged share of Snap common stock
• Approximately $3.82 per allegedly damaged call option
• Approximately $6.66 per allegedly damaged put option

• Estimated average net recovery after deductions:
• Approximately $0.09 per damaged share
• Approximately $2.63 per damaged call option
• Approximately $4.59 per damaged put option

• Recognized loss amounts depend on transaction timing and security type:
• For Snap common stock purchased or otherwise acquired during the class period and sold before Oct. 22, 2021, the recognized loss amount is $0.
• For Snap common stock sold from Oct. 22, 2021, through Jan. 19, 2022, the recognized loss amount is the least of: artificial inflation per share at purchase, purchase price minus the applicable post-disclosure average closing price or purchase price minus the sale price.
• For Snap common stock held as of the close of trading on Jan. 19, 2022, the recognized loss amount is the lesser of the artificial inflation per share at purchase or the purchase price minus $48.63.
• For Snap call options and put options, recognized loss amounts depend on artificial inflation or deflation per share, the transaction price and the Oct. 22, 2021, closing price. Only option series that expired on or after Oct. 22, 2021, are eligible.

• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to claim a Snap securities class action settlement payment

Class members may submit a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is May 6, 2026.

Settlement administrator's mailing address: Snap Securities Settlement, c/o A.B. Data Ltd., P.O. Box 173101, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase or sale price

Claimants must provide documentation supporting all Snap securities transactions during the class period. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

$65 million settlement fund

The $65,000,000 settlement fund includes:

• Settlement administration costs: Up to $1,000,000
• Attorneys’ fees: Up to $19,500,000
• Attorneys’ litigation expenses: Up to $715,000
• A service award to the lead plaintiff: Up to $15,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: March 26, 2026
• Fairness hearing: April 23, 2026
• Deadline to file a claim: May 6, 2026

When is the Snap securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged Snap Inc. and certain executives made false or misleading statements about the impact of Apple Inc.’s privacy changes and the rollout of SKAdNetwork, which allegedly caused investors to purchase or acquire Snap securities at artificially inflated prices.

Snap Inc. and the named defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Claim form