Snap Shareholder Sues Board After Ad Tool Glitch Dings Sales

Snap Inc. management was accused in a stockholder lawsuit of concealing a technical issue impacting advertising auctions before reporting underwhelming sales for the second quarter of 2025.

The Snapchat owner’s stock price plunged more than 17% on Aug. 6, the day after Snap attributed a revenue growth slowdown to the issue with its ad platform, the timing of Ramadan, and other effects, according to the shareholder derivative action filed in the US District Court for the Central District of California Tuesday.

It was the share price’s sharpest one-day drop in more than a year, according to data compiled by Bloomberg. ...