Snap says it agreed to a $187.5 million settlement in a lawsuit where investors said that the company understated Snapchat's threat from Instagram (SNAP)

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• Snapchat's parent company Snap says that it agreed to a $187.5 million settlement in a class action lawsuit brought against the company by investors following its IPO in 2017.
• The agreement was signed in January, the company said in its quarterly earnings statement on Tuesday. 
• Investors had sued the company over allegations of failing to properly warn them ahead of its IPO about the competition that Snapchat faced from Facebook-owned Instagram.
• Snap faced an investigation from the US Department of Justice and the Securities and Exchange Commission over the matter, but it was dropped in late 2019.
• The company took a $100 million expense for the settlement in its earnings statement, with the balance of the settlement apparently covered by Snap's insurance.
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Snap, Snapchat's parent company, said Tuesday that it had signed a preliminary agreement to pay $187.5 million to settle a class action lawsuit filed against the company in 2017 by investors following its initial public offering.

Snap had signed a preliminary deal to settle the case in January, as previously reported by Law360.

See the rest of the story at Business Insider

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