New York Stock Exchange with a Snap Inc. logo hung shortly before the company’s IPO in New York, U.S., March 2, 2017. REUTERS/Lucas Jackson
(Reuters) – A Snap Inc investor sued the social media company on Thursday, alleging it downplayed how a change in Apple Inc’s privacy policy threatened advertising revenue.
The lawsuit filed in Los Angeles federal court comes three weeks after Snap shares fell 25% on news that changes restricting user tracking on Apple devices had hurt Snap’s ability to target and measure global advertising.
A spokesperson for the Santa Monica, California-based company declined to comment on the litigation on Friday.
Investor Kellie Black says in the lawsuit that Snap and several executives oversold the company’s ability to adapt to Apple privacy updates that rolled out broadly in June and prevent digital advertisers from tracking iPhone and iPad users without their consent.
The changes have affected prospects for other companies that depend on online advertising, including Facebook Inc.
The case is Black v. Snap Inc et al., U.S. District Court, Central District Of California, No. 2:21-cv-08892.
For Black: Laurence Rosen of The Rosen Law Firm.
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