The Court has granted final approval of the Federal Settlement. The Judgment approving the Settlement, along with the Court’s Orders approving the Plan of Allocation of the Settlement proceeds and awarding attorneys’ fees and expenses can be found here.
The information contained on this web page is only a summary of the information presented in more detail in the Notice of (I) Pendency of Class Action and Proposed Settlement of Federal Case; (II) Motion for an Award of Attorneys’ Fees and Litigation Expenses; and (III) Settlement Hearing (“Notice”). Because this web page is just a summary, you should review the Notice and Frequently Asked Questions for additional details.
Summary of the Federal Action and the Federal Settlement
On March 9, 2021 the Court entered the Judgment approving the settlement of the securities class action captioned In re Snap Inc. Securities Litigation, Case No. 2:17-cv-03679-SVW-AGR (C.D. Cal.) (“Federal Action”) against Snap Inc. ("Snap") and other defendants (collectively, "Defendants") for alleged violations of the federal securities laws during the Class Period. Class Representatives alleged that Defendants made certain materially false and misleading statements, or omitted to disclose certain information they were required to disclose regarding: (i) Snap’s characterizations and explanations for the slowing growth in daily active users (“DAUs”) it experienced in the months leading up to Snap’s IPO, and (ii) Snap’s characterizations about the quality of its DAUs, particularly as to whether Snap used “growth hacking” techniques to boost its DAU growth. Defendants deny the allegations of wrongdoing asserted in the Action, and deny any liability whatsoever to any member of the Class.
Court-Appointed Class Representatives consist of Smilka Melgoza, as trustee of the Smilka Melgoza Trust U/A DTD 04/08/2014, Rediet Tilahun, Tony Ray Nelson, Rickey E. Butler, Alan L. Dukes, Donald R. Allen, and Shawn B. Dandridge (collectively, “Class Representatives” or “Federal Plaintiffs”). Class Representatives, on behalf of themselves and the Court-certified Class (defined below), reached the settlement of the Federal Action with Defendants for a payment of $154,687,500 in cash that resolves all claims in the Federal Action (“Settlement” or “Federal Settlement”).
The Class certified by the Court consists of:
All persons and entities who purchased or otherwise acquired Snap Inc. Class A Common Stock between March 2, 2017 and August 10, 2017, inclusive, and were damaged thereby. Certain persons and entities are excluded from the Class as set forth in ¶ 30 of the Notice.
If you are a member of the Class, your legal rights will be affected whether you act or do not act. Please read the detailed Notice to fully understand your rights and options.
If you are a member of the Class, you will need to complete and submit a Claim Form in order to be potentially eligible to receive a payment from the Settlement. The deadline for submitting a claim was January 25, 2021; however, Claim Forms received after January 25, 2021 will still be processed and considered for payment if received while timely Claim Forms are still being processed. Payments to eligible Class Members will be made in accordance with the Court-approved Plan of Allocation (attached as Appendix A to the Notice). Payments to eligible Class Members will be made only after any appeals are resolved, both the Federal Settlement and the State Settlement become Final, and after the completion of all claims processing. Please be patient as this process with take some time to complete.
PLEASE NOTE: If you are a member of the Class, you may also be a member of the Settlement Class in the related State Action and eligible to receive a payment in connection with the State Settlement as well. Information on the State Action and the Settlement can be found HERE. There is one Claim Form for both this Settlement and the State Settlement. Accordingly, if you submit a Claim Form, your Claim Form will be processed in connection with both settlements. Please do not submit two Claim Forms.
|YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT:
|SUBMIT A CLAIM FORM POSTMARKED (IF MAILED), OR ONLINE, NO LATER THAN JANUARY 25, 2021.
||This is the only way to be eligible to receive a payment from the Settlement Fund. If you are a Class Member, you will be bound by the Settlement as approved by the Court and you will give up any Released Plaintiffs’ Claims (defined in ¶ 41 of the Notice) that you have against Defendants and the other Released Defendants’ Parties (defined in ¶ 42 of the Notice), so it is in your interest to submit a Claim Form. If you submit a Claim, your Claim will be processed in accordance with the plans of allocation for both the Federal Settlement and the State Settlement.
PLEASE NOTE: YOU ONLY NEED TO SUBMIT ONE CLAIM FORM IN ORDER TO PARTICIPATE IN THE SETTLEMENTS OF BOTH THIS ACTION AND THE STATE ACTION. Although the claim submission deadline has passed, Claim Forms received after January 25, 2021 will still be processed and considered for payment if received while timely Claim Forms are still being processed.
|EXCLUDE YOURSELF FROM THE CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN JANUARY 25, 2021.
||Deadline has passed.
|OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS RECEIVED NO LATER THAN JANUARY 25, 2021.
||Deadline has passed.
|GO TO A HEARING ON FEBRUARY 22, 2021 AT 1:30 P.M., AND FILE A NOTICE OF INTENTION TO APPEAR SO THAT IT IS RECEIVED NO LATER THAN JANUARY 25, 2021.
||Deadline has passed.
||If you are a member of the Class and you do not submit a valid Claim, you will not be eligible to receive any payment from the Federal Settlement. You will, however, remain a member of the Class, which means that you give up your right to sue about the claims that are resolved by the Settlement and you will be bound by any judgments or orders entered by the Court in the Federal Action.
How do I obtain more information?
Detailed information about the Federal Action and the Federal Settlement is contained in the Notice available for download on the Important Documents page of this website, and on the Frequently Asked Questions page of this website. Additional information can also be obtained by contacting the Claims Administrator by calling toll-free 1-855-958-0630; emailing info@SnapSecuritiesLitigation.com; or mailing a letter to:
Snap Securities Litigation
c/o JND Legal Administration
P.O. Box 91314
Seattle, WA 98111
Inquiries should NOT be directed to the Court, the Clerk of the Court, or Defendants.