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Snap required to face suit alleging IPO hid information

Published 06/08/2018, 05:46 PM
© Reuters.  Snap required to face suit alleging IPO hid information
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  • With a loss in court, Snap (NYSE:SNAP) may have to face investors who claim deceit from the company's initial public offering last year.
  • The company lost its effort to dismiss a lawsuit from investors who allege that the company didn't disclose how much competition from Instagram (NASDAQ:FB) was hurting growth in late 2016, and that Snap didn't disclose a sealed whistleblower lawsuit claiming inaccuracies in the company's daily user count.
  • The next step for plaintiffs is to request class action status.
  • Shares rose 2.8% during the regular session; they're up 0.3% after hours.
  • Now read: The Market Doesn't Care About Facebook


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