After two and a half years of aggressive litigation and another year of negotiations, the U.S. District Court for the Central District of California has approved a $155 million settlement agreement in a class action against Snap Inc. (“Snap”).
The 2018 class action was filed by Snap investors after accusations arose that the social media company and its executives used faulty growth metrics ahead of its initial public offering (IPO).
Partners Stephen G. Larson and Paul A. Rigali were initially brought on by lead counsel Kessler Topaz Meltzer & Check, LLP as local trial counsel for the class members to obtain a class certification order and prepare for trial, which was scheduled for March 2020.
Following the bid for class certification, Snap appealed the certification before the U.S. Court of Appeals for the Ninth Circuit and filed a motion for summary judgment. The parties came to a settlement agreement during mediation in January 2020. Publicly disclosed in March 2020 when the class filed a motion for Judge Stephen V. Wilson’s approval of the settlement, the settlement resolves claims that Snap failed to disclose problematic growth metrics prior to its IPO.
On Feb. 18, 2021, Judge Wilson approved the $155 million settlement. The order was covered in articles by Emilie Roscoe of Law360, which can be viewed here, and Gina Kim of the Daily Journal, which can be viewed here (subscriptions required).