Snap Investor Sues After Advertising Tool Glitch Hurts Sales (2)

Snap Inc. hid a technical issue and other events before reporting second-quarter sales that missed expectations, a shareholder lawsuit said.

The Snapchat owner’s stock price plummeted 17% on Aug. 6, the day after Snap attributed the slowdown to the issue with its ad platform, Ramadan’s timing, and other effects, said the proposed class action filed in the US District Court for the Central District of California Thursday. It was share price’s sharpest one-day drop in more than a year, according to data compiled by Bloomberg.

Defendants Snap, CEO Evan T. Spiegel, and chief financial officer Derek Andersen previously “created ...