Snapchat parent company has sued for downplaying the importance of iOS changes

Source: Christine Romero-Chan / iMore

Investors in Snapchat’s parent company Snap are suing the firm, claiming that it deceived people because of the impact that changes in privacy in iOS 14 would have on its business.

According to Reuters:

Investor Snap Inc. he sued social media company on Thursday, saying it downplayed the importance of the change in Apple Inc.’s privacy policy. jeopardized advertising revenue. The lawsuit, filed in federal court in Los Angeles, followed three weeks after Snap shares fell 25% over news that changes restricting user tracking on Apple devices damaged Snap’s ability to target and measure global advertising.

Investor Kellie Black claims that Snap made statements that were “materially false and / or misleading” because they “misrepresented and failed to disclose the following harmful facts regarding the Company’s business, operating and financial results that were known to the defendants or they have ruthlessly neglected them. ” In particular, the lawsuit alleges that Snap did not disclose that Apple’s changes would have and affected the company’s advertising business, and that it overestimated its ability to go beyond measures and that it “knew but mitigated the risks of the impact of Apple’s privacy changes.” had on the company’s advertising business. “

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The lawsuit is a group lawsuit representing anyone who bought Snap shares and was damaged because of the lawsuits, described to be so numerous that merging all of them into a lawsuit would not be practical. The lawsuit seeks damages to the plaintiff and the class.

According to the lawsuit, Snap shares fell some 25% in October after it was shown that it continues to fight Apple’s privacy changes and therefore missed the earnings target. In iOS 14.5 earlier this year, Apple made third-party tracking using the IDFA identifier in all apps and services for the purpose of advertising the inclusion experience, with numerous surveys showing that most people give up. In a recent earnings conversation, Apple CEO Tim Cook reiterated that Apple’s move was extremely popular among users of the iPhone 13 and its other best iPhones.

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Naveen Kumar

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