Snapchat parent hands over data for US inquiry

phys.org | 11/14/2018 | Staff
JimmyJoe (Posted by) Level 3
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Snapchat's parent company Snap said Wednesday US officials are looking into how forthright the company was with aspiring investors prior to its stock market debut last year.

Snap Inc. has been responding to subpoenas and request for information from the Department of Justice and Securities and Exchange Commission, a spokesperson said in response to an AFP inquiry.

Inquiries - Class-action - Lawsuit - Snap - Investors

The inquiries apparently stemmed from a class-action lawsuit filed against Snap by investors who contend the company didn't reveal how much of a competitive threat Snap faced from Facebook-owned Instagram.

"It is our understanding that these regulators are investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures," the Snap spokesperson said.

Visibility - Investigations - Understanding - DOJ - IPO

"While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram."

Snap disputed the lawsuit's claims, calling them "meritless," and said it would continue...
(Excerpt) Read more at: phys.org
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