(AP Photograph/Richard Drew, File)
Snap Inc. (NYSE: SNAP) has acquired federal subpoenas associated to a class-action lawsuit stemming from its 2017 preliminary public providing.
The lawsuit, filed final Might, claims that Snap misled traders about its consumer progress earlier than going public.
The corporate mentioned in an announcement Wednesday that it has been responding to subpoenas and requests for info from the Securities and Trade Fee and the Division of Justice. The corporate says its understanding that the regulators are wanting into disclosures throughout its preliminary public providing about competitors from Instagram.
The SEC and the DOJ declined to remark. Snap says it believes that the lawsuit is “meritless” and its IPO disclosures have been “correct and full.”
Snapchat has struggled to compete with Instagram, particularly after the Fb-owned app efficiently copied its widespread “tales” function.