Snap Stock Surges on 30% Volume Spike to 138th Trading Rank as Ad Revenue Lawsuit Unveils 17% Plunge

On September 2, 2025, Snap Inc. (SNAP) closed with a 2.66% gain, trading on $0.73 billion in volume—a 30.74% increase from the previous day. The stock ranked 138th in trading activity. A class-action lawsuit filed against the company alleges misrepresentation of advertising revenue growth between April 29 and August 5, 2025. Investors claim defendants overstated financial health by concealing a sharp decline in ad revenue growth, which fell from 9% in Q1 to 1% by April due to operational failures. The lawsuit highlights the company’s failure to disclose these issues during the period, leading to a significant market reaction.

The case details assert that Snap’s Q2 2025 earnings report revealed a slowdown in ad revenue growth, attributed to platform issues and external factors like Ramadan timing. Following the announcement, the stock plummeted 17.15% in a single day, from $9.39 to $7.78 per share. The lawsuit seeks to recover losses for investors who traded during the alleged misrepresentation period. Legal teams representing shareholders emphasize the firm’s track record in securities litigation but do not provide independent market analysis of Snap’s financial performance.

Backtest data confirms the stock’s 17.15% decline on August 6, 2025, aligning with the plaintiffs’ claims. The drop followed the Q2 earnings disclosure and the lawsuit’s allegations of misleading statements. Investors affected during the specified timeframe have until October 20, 2025, to seek lead plaintiff status in the case.