Snapchat sued by ex-employee, alleging investors were misled before IPO

Snapchat sued by ex-employee, alleging investors were misled before IPO

An ex-Snapchat worker is reportedly claiming, in a lawsuit, that his former employer misrepresented their financial backing beofre the IPO when they originally recruited him – and then supposedly pressured him to spill secrets about his time at Facebook.  

The LA Times reports that Anthony Pompliano previously worked in Snapchat’s Business Operations Department before being fired in September 2015.

He claims in his lawsuit that the Snapchat lied about the reasoning behind his termination which in turn prevented him from securing further employment elsewhere.

The lawsuit states: “Mr Pompliano was terminated because he refused to participate in a scheme to deceive the public and artificially inflate Snapchat's valuation in anticipation of its [initial public offering].”

However, Snapchat have labelled the claims as “totally made up”.

Pompliano alleges that he raised his concerns over the supposed misrepresentation of figures to three of his superiors, and that his refusal to divulge information about Facebook had angered executives.

Pompilano seeks an injunction which would stop Snapchat from misrepresenting his firing and is seeking lost wages and other damages.   

The suit claims: “Snapchat will not let anything stand in its way of an IPO, including obligations to represent material facts accurately." 

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