Snap Lawsuits and SnapLawsuits.com offers investors information about legal actions regarding Snap-related companies.
Learn about Snap, Inc., its stock price and potential inconsistencies regarding broker-dealer recommendations. If you purchased Snap Inc. shares (NYSE: SNAP), and feel you have suffered harm from unscrupulous broker-dealer or investment advisor practices, please contact an attorney. You may be able to recover some or all of your losses from purchasing SNAP shares due to bad advice or fraudulent practices.
Snap CEO Evan Spiegel got a $637 million bonus last year – Click here to learn more.
News via CNBC.com on 5-2-18:
Snap plunges after missing on revenue and daily active users
- Loss per share: 17 cents vs. 17 cents, adjusted, according to Thomson Reuters consensus estimate
- Revenue: $230.7 million vs. $244.5 million, according to a Thomson Reuters consensus estimate
- Snap also advised its next quarter year-over-year revenue growth rate will “decelerate substantially” compared to Q1.
View SNAP’s Stock Chart
The Mauriello Law Firm, APC represents clients in business, consumer, investment, environmental, and other civil litigation in state and federal courts as well as arbitration forums. Founded in 1996 by California securities fraud attorney Thomas D. Mauriello, the Firm handles a wide variety of sophisticated and challenging legal matters, providing personal attention and the highest standards of professionalism.
A primary area of the Firm’s practice involves representing investors in investment and securities disputes with brokerage firms, investments advisors, securities issuers, and others, often in FINRA arbitration. Another primary area of the Firm’s practice involves representing consumers in consumer class actions, often involving fraudulent or deceptive services or products.
This Snap lawsuits website may help investors who feel they have been harmed by purchasing shares of Snap, Inc. (SNAP: NYSE) due to unscrupulous or inappropriate advice from broker-dealers or investment advisors. SNAP shares started trading publicly after an initial offering price (IPO) at $17 on March 2, 2017. The lead underwriter was Morgan Stanley (MS:NYSE). The underwriting group included Goldman, Sachs & Co., J.P. Morgan Securities LLC, and Deutsche Bank Securities Inc., among other broker-dealers. Click here to view an underwriting chart and an estimate of underwriting fees from CNBC.com.
Shortly after the IPO, Morgan Stanley made a purchase recommendation on the shares of SNAP. Sometimes this is done to support the stock price of a company brought public. Subsequently, the price of SNAP shares reached a high price of $29.44 per share on or around March 9, 2017. Soon thereafter, however, SNAP shares began falling. Click here to read CNBC.com’s story about Morgan Stanley’s subsequent downgrade of SNAP shares and fall in SNAP stock price. Click here for a similar article from BusinessInsider.com.
SNAP Reaches New Lows
August 1, 2017 update: (Source: Fortune Term Sheet newsletter)
“SNAP: The company’s share lockup for early investors expired yesterday and its stock ended the day down 1%. Employees won’t get to sell for another two weeks.
Meanwhile the S&P 500 announced it will exclude Snap from its index on account of its three-class share structure. This follows the FTSE Russell’s decision to do the same.
This means that even though Snap ignored investor complaints about its non-voting share structure, the indexes did not. Back in February the Council of Institutional Investors sent a letter to Snap urging the company to reconsider its share no-vote structure. I wrote at the time:
The kneejerk defense here is “Don’t like it? Don’t buy.” But because companies of Snap’s size will be included in major stock indexes, many investors won’t be able to avoid it.
It also begs the question of whether investors will ever be able to pick and choose which parts of index funds they want to own. (The S&P 500, minus Snap, for example.)
The indexes just made that judgment call on behalf of investors. It sends a powerful message to startups with supershares and board structures that give their founders total control. The only problem is it’s not exactly consistent: Facebook, which has three classes of shares, and Alphabet, which has two, remain on the index.”
“Snap Inc. is a camera company.
We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate.
Our products empower people to express themselves, live in the moment, learn about the world, and have fun together.”
Snap Inc. Executives
Mr. Spiegel is our co-founder and has served as our Chief Executive Officer and a member of our board of directors since May 2012.
Mr. Murphy is our co-founder and has served as our Chief Technology Officer and a member of our board of directors since May 2012. Mr. Murphy holds a B.S. in Mathematical and Computational Science from Stanford University.
Mr. Khan has served as our Chief Strategy Officer since January 2015. From May 2011 to January 2015, Mr. Khan served as a Managing Director in the Investment Banking Division at Credit Suisse. From March 2004 to May 2011, Mr. Khan was an Equity Analyst at J.P. Morgan Securities Inc. Mr. Khan holds a B.S.B.A. in Finance and Economics from the University of Denver.
More Snap Lawsuits
Snap Fitness Inc., Chanhassen, Minnesota, has been accused of unfairly charging its customers a $35 club enhancement fee, according to a July 3 class action complaint filed in Ohio common pleas court.
Plaintiff Thomas Dwyer complained to his local Ohio Snap Fitness franchisee in February when he learned in an email of the upcoming fee. The fee is to be used for nationwide club improvements, according to court documents obtained by Club Industry, but Dwyer argued that such a provision was not part of his original membership agreement. The franchisee allegedly affirmed that the fee “cannot be found in [the] membership agreement and is an industry wide fee that [the] corporate oversight just added,” and that the franchisee “just found out about [the fee] a few weeks ago.”
The fee was later charged to Dwyer’s on-file credit card. He is now seeking a trial by jury and damages on his own behalf, as well as for other similarly affected members.
Dwyer’s court complaint alleges: “The membership agreement contains no provision authorizing either the franchisee or Snap Fitness to charge a club enhancement fee, or any other fees, including but not limited to, for maintenance of the club. When plaintiff executed the membership agreement, he was never advised of a club membership fee, or any other fees, including but not limited to, for maintenance or upgrade of the club.”
Dwyer argues that Snap Fitness’ 43 Ohio franchisees must adhere to corporate policies related to memberships and pricing, even though they are independently operated.
The court complaint accuses Snap Fitness of breach of contract, unjust enrichment, violating the Ohio Consumer Sales Practices Act and violating the Ohio Prepaid Entertainment Contract Act.
“Snap Fitness Corporate denies any wrongdoing and will vigorously defend against the lawsuit,” a spokesperson for Snap Fitness’ parent entity, Lift Brands Inc. told Club Industry on July 21.