Feds subpoena Snap over shareholder lawsuit


1 photo
Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

NEW YORK (AP) — Snap Inc. has received federal subpoenas related to a class-action lawsuit stemming from its 2017 initial public offering.

The lawsuit, filed last May, claims that Snap misled investors about its user growth before going public.

The company said in a statement Wednesday that it has been responding to subpoenas and requests for information from the Securities and Exchange Commission and the Department of Justice. The company says its understanding that the regulators are looking into disclosures during its initial public offering about competition from Instagram.

The SEC and the DOJ declined to comment. Snap says it believes that the lawsuit is "meritless" and its IPO disclosures were "accurate and complete."

Snap has struggled to compete with Instagram especially after the Facebook-owned app successfully copied its popular "stories" feature.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Photos

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast