Snap, Inc. – SNAP: Danger: Snap is Playing Disclosure Games with Investors over Joint SEC/DOJ Investigations. On Tuesday 13-Nov-2018, Reuters broke a story on Snap, Inc. which opened with this, “The U.S. Justice Department and Securities and Exchange Commission have subpoenaed Snap Inc (SNAP.N) for information about its March 2017 initial public offering.”
We have subpoenas flying, which means the SEC investigation of Snap is formal. But we also have the DOJ involved, which means there is a criminal exposure here. Investors should ask/wonder, why was this not disclosed earlier? Or, why is there still no press release or 8-K as we go to print?
Surely a formal SEC investigation with a DOJ criminal exposure into a core competency of a company would be considered a material exposure to any investor with a pulse. The fact that no formal disclosure mechanisms have been utilized by SNAP regarding this exposure is dangerous. It screams of incompetence, or a deliberate effort to deceive, neither of which is helpful in a young company’s life.
We have no history on Snap in our research database.
Disclosure Games® is a term we use to highlight those public companies engaging in disclosure practices that in our opinion may be misleading, confusing, evasive, or otherwise lacking the transparency needed for investors to make well-informed investment decisions regarding a potentially material exposure.
Notes: New SEC investigative activity could theoretically begin or end after the date covered by this latest information which would not be reflected here.