Snap Inc. (SNAP) Sued: Lawsuit Alleges Ad Platform ‘Execution Error’ Concealed From Investors, According to Hagens Berman

SAN FRANCISCO, Sept. 29, 2025 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been initiated against Snap Inc. (NYSE: SNAP) and certain senior executives. The complaint alleges the company presented a misleading picture of its digital advertising platform's performance and future growth prospects to investors. The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025. This legal action follows a steep drop in Snap's stock price after the company released its second-quarter financial results.

Video: https://youtu.be/0cFMfKT71ec

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
• Contact the Firm Now:
  • Phone: 844-916-0895
  • Email: SNAP@hbsslaw.com
  • Website Form: www.hbsslaw.com/investor-fraud/snap

Snap Inc. (SNAP) Securities Class Action:

The lawsuit, which seeks to hold the company accountable for investor losses, centers on claims that Snap gave false assurances about the effectiveness and growth potential of its advertising platform.

The complaint alleges the company experienced 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 throughout the Class Period.

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 admitted that in an effort to improve advertiser performance, it “shipped a change that caused some campaigns to clear the auction at substantially reduced prices”. This admission confirmed a significant slowdown in ad revenue growth, which had decelerated from 9% in Q1 to just 1% in April.

News of the failure caused Snap’s stock price to tumble by approximately 17% the following day.

Hagens Berman’s Investigation on Behalf of Investors

Hagens Berman, a global plaintiffs’ rights law firm, is actively investigating the alleged claims and urges investors who suffered substantial losses to come forward.

“We’re investigating if the company knew about this major ‘execution error’ and the corresponding deceleration in revenue growth but chose to delay disclosure, thereby misleading the market,” 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 SNAP@hbsslaw.com.

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.

Contact:
Reed Kathrein, 844-916-0895

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0ad0a1a0-eb68-4f5f-9402-98622c67dda9

 A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c636521d-0437-4c90-9360-c9f244a6d7a6

Snap Inc. (SNAP) Securities Fraud Class Action

Hagens Berman Highlights Lawsuit Targeting Snap Inc. (SNAP) Over Alleged Misleading Statements

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