Snap Inc. Derivative Settlement
The information contained on this web page is only a summary of information presented in more detail in the Stipulation and Agreement of Settlement and the Notice of Proposed Settlement which you can access by clicking here. Because this website is just a summary, you should review the Notice of Proposed Settlement for additional details.
PLEASE NOTE: Because these lawsuits are derivative actions brought on behalf of Snap, and are NOT class actions brought on behalf of shareholders, no shareholder will be compensated directly by this settlement and, therefore, there is no claims procedure for shareholders. There is a separate settlement of class action litigation brought on behalf of Snap shareholders, In re Snap, Inc. Securities Litigation. If you have questions about your entitlement to share in that settlement, please contact Lead Counsel in that action: Sharan Nirmul of Kessler Topaz Meltzer Check LLP at 484.270.1465 or email@example.com.
The parties in Wolfson v. Spiegel, et al., No. BC720152, Pokorney v. Spiegel, et al., No. 18STCV09365, and Shabbouei et al. v. Spiegel, et al., No. 19STCV08413, all pending in California Superior Court, Los Angeles County (together, the “Actions”), have reached a proposed settlement (the “Settlement”) of claims brought derivatively on behalf of Snap Inc. (“Snap”), against certain of its directors and officers, (collectively, “Defendants”). If approved, the Settlement will resolve lawsuits in which plaintiffs allege that the Defendants breached their fiduciary duties owed to Snap by making materially false and misleading statements and omissions about Snap’s key performance indicators and other related matters. Defendants deny any liability or wrongdoing. If you own Snap common stock since at least August 12, 2020 the Settlement pertains to you. Please review the detailed Notice described below for additional information about the Settlement.
Pursuant to the Settlement, Snap agrees to adopt and/or maintain certain corporate governance and internal control reforms for at least three (3) years from the date of final Court approval of the Settlement, unless altered in accordance with the mechanisms provided in the Settlement. Snap also agrees to pay or cause to be paid attorneys’ fees and expenses in the total amount of $7,500,000.00 (the “Fee and Expense Amount”) to Plaintiffs’ Counsel, subject to approval of the Court. Plaintiffs will each receive a Service Award in an amount not to exceed $2,500 from the Fee and Expense Amount, subject to approval of the Court. This Notice should be read in conjunction with, and is qualified in its entirety by reference to, the text of the Settlement Agreement.
For additional information, please review the detailed Notice as well as the Settlement Agreement available by clicking here.
If you want to object to any aspect of the Settlement or to the Fee and Expense Amount or Service Awards, you are strongly encouraged to file a written objection with JND Legal Administration, the Notice Administrator, by no later than November 16, 2020, who will provide the objection to Counsel for the Parties and will file them with the Court. The detailed Notice provides instructions on how to object.
Final Approval Hearing
The Court will hold a hearing on December 16, 2020 at 10:00 a.m. to consider, among other things, whether to approve the Settlement, Fee and Expense Amount, and Service Awards. You may, but are not required to, attend the hearing and ask to be heard by the Court. The Court may adjourn the date of the Settlement Hearing without further notice and retains jurisdiction to consider all further applications arising out of or connected with the Settlement. The Court may approve the Settlement and any of its terms, with such modifications as may be agreed to by the Parties, if appropriate, without further notice. The Settlement will not become effective until it receives final approval from the Court and becomes final.