Thursday January 05, 2017

Lawsuit: Snapchat Showed Investors False User Statistics

This lawsuit looks like it is going to get dirty. On the one hand, this guy says he was hired away from Facebook but, after voicing concerns about Snapchat's misrepresentations about user statistics, he was fired just three weeks later. To make matters worse, he claims the company is lying about the reason for his termination. On the other hand, a Snapchat rep claims this is a story made up by a disgruntled employee.

"Mr. Pompliano was terminated because he refused to participate in a scheme to deceive the public and artificially inflate Snapchat's valuation in anticipation of its" initial public offering, the lawsuit states. Company spokeswoman Mary Ritti described the complaint as meritless. "It is totally made up by a disgruntled former employee," she said in a statement.