SEC, Justice Dept. may be investigating claims of improper disclosures
Snap Inc. is facing scrutiny from regulators about its disclosures to investors ahead of its 2017 initial public offering.
The disappearing-messages company has received subpoenas and requests for information from the Justice Department and Securities and Exchange Commission, a spokesman for Snap said Tuesday.
Snap SNAP, +0.90% said in a statement it believes the regulators are investigating allegations that it didn’t make proper disclosures to investors related to its IPO, issues that had been previously raised in a class-action lawsuit.
“While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram,” a spokesman for Snap said in a statement.