Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Snap, Inc. (SNAP)

NEW YORK, Aug. 22, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Snap Inc. (“Snap” or the “Company”) (NYSE: SNAP) securities between April 29, 2025 and August 5, 2025, inclusive (the “Class Period”).

The Complaint alleges that Defendants provided investors with material information concerning Snap’s advertising revenue expectations for the second quarter and full year fiscal 2025. The Complaint continues to allege that Defendants’ statements included, among other things, confidence in Snap’s ability to execute on its advertising growth potential and in management’s claims that ongoing headwinds in April were externally sourced, coupled with the minimization of both the significance of such headwinds and the magnitude of their impact.

The Complaint alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Snap’s advertising revenue growth rate; notably, that, due to Snap’s own execution failure, it had significantly declined from 9% in the first quarter to only 1% in April. The Complaint further alleges that such statements absent these material facts caused Plaintiff and other shareholders to purchase Snap’s securities at artificially inflated prices.

According to the Complaint on August 5, 2025, Snap announced its financial results for the second quarter of fiscal 2025, disclosing a deceleration in advertising revenue growth. The Complaint continues to allege that the Company attributed the slowdown to “an issue related to our ad platform, the timing of Ramadan and the effects of the de minimis changes.”

The Complaint alleges that investors and analysts reacted immediately to Snap’s revelation. The Complaint continues to allege that the price of Snap’s common stock declined dramatically, from a closing market price of $9.39 per share on August 5, 2025, Snap’s stock price fell to $7.78 per share on August 6, 2025, a decline of about 17.15% in the span of just a single day.

Investors who purchased or otherwise acquired shares of Snap should contact the Firm prior to the October 20, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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