Snap facing regulatory scrutiny over pre-IPO disclosures

Snap Inc. went public in March 2017.

SEC, Justice Dept. may be investigating claims of improper disclosures

Snap Inc. is facing scrutiny from regulators about its disclosures to investors ahead of its 2017 initial public offering.

The disappearing-messages company has received subpoenas and requests for information from the Justice Department and Securities and Exchange Commission, a spokesman for Snap said Tuesday.

Snap SNAP, +0.90% said in a statement it believes the regulators are investigating allegations that it didn’t make proper disclosures to investors related to its IPO, issues that had been previously raised in a class-action lawsuit.

“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,” a spokesman for Snap said in a statement.

Share:

Other News

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Canada News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Latest Headlines

Subscribe

Join our email list to receive the free market update newsletter

Canada News Group is a financial media company whose focus is to provide readers with financial news and content on the latest trends and happenings in the financial world.

error: Content is protected !!