SEC subpoenas Snap amid probe into 'growth hacking' and misleading investors

Image: Signage for Snap Inc., parent company of Snapchat
A shareholder lawsuit alleges that Snap misrepresented its use of smartphone notifications and other “growth hacking” tactics to spur Snapchat usage.Drew Angerer / Getty Images file

The Justice Department and Securities and Exchange Commission have subpoenaed Snap Inc for information about its March 2017 initial public offering.

Snap said in a statement on Tuesday it has responded to the government subpoenas and other requests for information.

The previously unreported federal inquiries follow an ongoing shareholder lawsuit in which investors allege that Snap misled the public about how competition from Facebook’s Instagram service had affected the company’s growth.

Snap said it believes that the federal regulators “are investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures.”

 
Read more starting at ‘”While we do not have complete visibility into these investigations, ‘ at…….
SEC subpoenas Snap amid probe into ‘growth hacking’ and misleading investors

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