Snap Inc, the company behind Snapchat, is facing a securities class action suit whichalleges it made “false” and “misleading” claims about user growth.

“Pomerantz LLP, which specializes in such cases, is seeking to represent shareholders in the company which went public just two months ago,” reported Variety on Tuesday. “The suit notes that Snap’s stock price plunged $4.93, or 21.45%, after its first quarterly report last week showed disappointing user growth. The suit also cites the claims of Anthony Pompliano, a former growth lead for Snapchat, who has filed his own lawsuit alleging that the company was using inflated metrics during his brief tenure there in 2015.”
Though the Pomerantz law firm has filed similar suits in the past, most notably against Twitter for the same reason last year, a Snap Inc. spokesman blew off the incident in a statement, saying, “Lawsuits like this are not uncommon and we are focused on growing our business.”
Moe>http://www.breitbart.com/tech/2017/0...claims-growth/