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. Please visit www.snapsecuritieslitigation.com for information about their claims procedure or to ascertain your entitlement to share in that settlement.
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
On December 16, 2020 the Court held a hearing at which it gave Final Approval to the Settlement described above.