Exclusive: Snap Unveils Subpoenas in US for Disclosure of Introductions

NEW YORK (Reuters) – The US Department of Justice and the Securities and Exchange Commission have summoned Snap Inc. (SNAP.N) for information on its initial public offering of March 2017, announced Tuesday the builder of social media applications to Reuters.

Snap said in a statement he responded to the government's subpoenas and other requests for information.

Previously unreported federal investigations follow an ongoing lawsuit in which investors allege that Snap misled the public about how competition from Facebook Inc. (FB.O) The Instagram service had affected the growth of the company.

Snap said he believes the federal regulators "are investigating issues related to previously disclosed allegations that have been claimed in the class action regarding the disclosure of our IPOs."

He continued, "Although we do not have full visibility on these investigations, we believe the DOJ is likely focused on the disclosure of IPOs related to Instagram competition."

Snap's Snapchat messaging application has struggled with growth in the number of users since its IPO. Despite higher than expected sales growth and reduced losses, its shares fell. They closed at $ 6.71 on Tuesday, down from the $ 17 initial offer price.

The company described the lawsuit as "baseless" and its disclosures prior to the IPO as "accurate and complete." She indicated that she would continue to cooperate with the SEC and the Ministry of Justice.

Snap acknowledged the evidence after the US government filed a sealed case in the case last Wednesday.

The complaint, filed in May 2017 in the Los Angeles US District Court, also alleges that Snap did not disclose a sealed suit filed before the IPO in which a former employee alleged that the company misstated certain parameters. of the user.

In June, Judge Stephen V. Wilson rejected Snap's motion to dismiss the case.