Snap Investors’ Suit Over Ad Revenue Revived on Exec’s Intent

Snap Inc. investors adequately alleged an executive’s knowledge about advertiser difficulties with a new tracking system, a federal appeals court said Friday in reviving securities claims against the company.

Each of two routes led to an inference of fraudulent intent, or scienter, on the part of Chief Business Officer Jeremi Gorman, the US Court of Appeals for the Ninth Circuit said in an unsigned, unpublished opinion. The opinion came close on the heels of the Dec. 5 oral argument.

The investors alleged Snap, which draws on user data for advertising purposes, downplayed how privacy changes the iPhone maker announced ...