Snap, Inc. Investigated for Alleged Securities Fraud

Portnoy Law Firm launches probe into Snap's financial reporting and platform safety issues

Published on Mar. 11, 2026

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The Portnoy Law Firm has initiated an investigation into Snap, Inc. (NYSE:SNAP) for potential securities fraud, following a significant drop in the company's stock price in 2024 after it reported quarterly financial results and faced a lawsuit from the New Mexico Attorney General over allegations of facilitating child sexual exploitation material on its platform.

Why it matters

Snap is one of the largest social media and messaging platforms, particularly popular with younger users. Allegations of financial misconduct and platform safety failures could have major implications for the company's reputation, user trust, and long-term viability.

The details

Snap's stock price fell 26.9% on August 2, 2024, after the company reported Q2 2024 financial results and provided Q3 guidance. Investors were further impacted on September 6, 2024, when the New Mexico Attorney General revealed the state had filed a lawsuit against Snap, alleging the company's recommendation algorithm, ephemeral content, and policies facilitated child sexual exploitation material, while also claiming Snap misled the public about platform safety.

  • On August 2, 2024, Snap's stock price fell $3.45, or 26.9%, to close at $9.36 per share.
  • On September 6, 2024, Snap's stock price dropped $0.25, or 2.8%, to close at $8.62 per share.

The players

Portnoy Law Firm

A law firm that represents investors in pursuing claims caused by corporate wrongdoing. The firm's founding partner has recovered over $5.5 billion for aggrieved investors.

New Mexico Attorney General

The Attorney General of the state of New Mexico, who revealed on September 5, 2024 that the state's Department of Justice had filed a lawsuit against Snap.

Snap, Inc.

A social media and messaging platform company, publicly traded on the New York Stock Exchange under the ticker symbol SNAP.

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What they’re saying

“Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/snap-inc.”

— Lesley F. Portnoy, Attorney (Portnoy Law Firm)

What’s next

The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors' options for pursuing claims to recover their losses.

The takeaway

This investigation highlights the potential risks and consequences for large tech companies like Snap regarding financial reporting accuracy and platform safety issues, which could significantly impact investor confidence and the company's long-term viability.