Snap Inc., the parent company of popular social media platform Snapchat, recently settled a class action lawsuit filed against them by shareholders. The lawsuit alleged that Snap misled investors about its user growth prior to its initial public offering (IPO) in 2017. As a result of the settlement, Snap has agreed to pay $187.5 million to shareholders who purchased Snap shares during the IPO.
The settlement amount of $187.5 million will be distributed among eligible shareholders who submit valid claims. The exact amount each shareholder will receive depends on various factors, including the number of eligible claims submitted and the number of shares owned by each claimant. It is important to note that the settlement per share amount will not be determined until after the claims process is completed.
The class action settlement is intended to compensate shareholders who suffered financial losses as a result of Snap’s alleged misrepresentations. By settling the lawsuit, Snap has avoided a lengthy and costly legal battle that could have had a significant impact on the company’s reputation and finances.
Here are some frequently asked questions about the Snap class action settlement:
1. Who is eligible to participate in the settlement?
Shareholders who purchased Snap shares during the IPO period are eligible to participate in the settlement.
2. How can I submit a claim?
The claims process will be administered by a court-appointed claims administrator. Shareholders will be notified about the claims process and provided with instructions on how to submit a claim.
3. When will I receive my settlement payment?
The exact timing of settlement payments will depend on the final approval of the settlement by the court. It is expected that payments will be made after the claims process is completed.
4. Can I still participate in the settlement if I sold my Snap shares?
Yes, shareholders who sold their Snap shares after the IPO period are still eligible to participate in the settlement.
5. Is there a deadline to submit a claim?
Yes, there will be a deadline to submit a claim. The specific deadline will be determined by the court and will be communicated to eligible shareholders.
6. Will participating in the settlement affect my rights as a shareholder?
Participating in the settlement will not affect your rights as a shareholder. You will still retain your ownership of Snap shares.
7. Can I opt out of the settlement?
Yes, shareholders have the option to opt out of the settlement. However, by doing so, they will not receive any compensation from the settlement.
8. What if I disagree with the settlement amount per share?
The settlement amount per share will be determined by the court based on various factors. Shareholders who disagree with the settlement amount can express their concerns during the court proceedings.
9. What happens if the settlement is not approved by the court?
If the settlement is not approved by the court, the lawsuit will continue, and the parties involved will have to pursue other legal avenues to resolve the matter.
In conclusion, the Snap class action settlement provides an opportunity for eligible shareholders to receive compensation for alleged misrepresentations made by the company. The settlement amount per share will be determined after the claims process is completed, and shareholders will be notified about the exact payment they will receive. It is important for eligible shareholders to stay informed about the claims process and submit valid claims within the designated deadline to ensure they receive their share of the settlement.