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Snap Faces Securities Class Action Over Advertising Slowdown as Investors Confront Oct. 20 Lead‑Plaintiff Deadline

Investors have until October 20 to seek lead‑plaintiff status in a case tied to disclosures about weakened ad‑revenue growth.

Overview

  • The putative class covers purchasers of Snap securities from April 29, 2025 through August 5, 2025.
  • The complaint alleges Snap promoted optimistic performance while ad‑revenue growth slid from about 9% in Q1 2025 to roughly 1% in April due to execution failures.
  • On August 5, 2025, Snap reported a deceleration in advertising revenue and cited an ad‑platform issue, the timing of Ramadan, and effects of de minimis changes.
  • Following the disclosure, Snap’s share price fell about 17% from $9.39 on August 5 to $7.78 on August 6, 2025.
  • The case is captioned Abdul‑Hameed v. Snap Inc., No. 25‑cv‑07844, in the Central District of California, and the allegations remain unproven as firms solicit lead‑plaintiff motions.