GlobeNewswire Inc | Nov 12, 2021 04:37PM EST

November 12, 2021

NEW YORK, Nov. 12, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against of Snap Inc. (Snap or the Company) (NYSE: SNAP) in the United States District Court for the Central District of California on behalf of those who purchased Snap common stock between July 22, 2020 and October 21, 2021, inclusive (the Class Period).

The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (i) Apples privacy changes would have, and were having, a material impact on Snaps advertising business; (ii) Snap overstated its ability to transition its advertising with Apples privacy changes; (iii) Snap knew of, but downplayed, the risks of the impact that Apples privacy changes had on Snaps advertising business; (iv) Snap overstated its commitment to privacy; and (v) as a result, Defendants public statements and statements to journalists were materially false and/or misleading at all relevant times.

On October 21, 2021, Snap disclosed weaker-than-expected revenue and weaker-than-expected guidance because of its advertising business, including due to Apples privacy changes. Snap also disclosed the risks of heightened restrictions on Snaps access and use of user data due to Apples privacy update, revealing that changes have adversely affected our targeting, measurement, and optimization capabilities, and in turn affected our ability to measure the effectiveness of advertisements on our services. This has resulted in, and in the future is likely to continue to result in, reduced demand and pricing for our advertising products and could seriously harm our business. On this news, Snaps stock price fell 26%.

Investors who purchased or otherwise acquired shares of Snap during the Class Period should contact the Firm prior to the January 10, 2022 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.