Snap Falls Amid DOJ and SEC Investigation of IPO Disclosures
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Snap Inc. shares fell Wednesday after the company said the U.S. Justice Department and Securities and Exchange Commission are looking into allegations it misled investors ahead of its initial public offering last year.
“Snap has been responding to subpoenas and requests for information made by staff from the DOJ and the SEC,” the company said Tuesday in a statement. “It is our understanding that these regulators are investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures. While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram.”