Snap Securities Litigation, $65M Settlement Approved—How to Claim Your Payment Before May 6, 2026 Deadline
Snap Inc. has agreed to pay $65 million to settle a securities fraud class action lawsuit alleging the company misled investors about Apple’s privacy changes and their impact on advertising revenue between February 5, 2021, and October 21, 2021. If you purchased Snap stock, call options, or sold put options during this period, you could receive a cash payment—but you must file your claim by May 6, 2026.
What the Snap Securities Litigation Alleged
The Apple Privacy Changes That Sparked the Lawsuit
In June 2020, Apple announced App Tracking Transparency (ATT), a major privacy change that would prevent apps like Snapchat from tracking users across devices unless users explicitly opted in. Since Snap’s revenue depends entirely on advertising—particularly direct response (DR) advertising that relies on precise user tracking—investors worried these changes could devastate Snap’s business.
The lawsuit claims Snap’s former Chief Business Officer, Jeremi Gorman, reassured investors during the April 22, 2021 earnings call that the impact would be “mitigated” because a “majority” of Snap’s critical DR advertisers had already “successfully implemented” Apple’s alternative tracking tool called SKAdNetwork (SKAN). Following these statements, Snap’s stock soared 46%, climbing from $57.05 on April 22, 2021, to an all-time high of $83.11 on September 24, 2021.
When the Truth Emerged
On October 22, 2021, Snap shocked the market by announcing that, precisely because of massive problems advertisers were experiencing with SKAN, the company would miss its revenue guidance for the first time in its history as a public company. Snap revealed these problems were so severe the company’s business would be materially impacted for at least the next year. The stock price plummeted, causing substantial investor losses.
The class action lawsuit accused Snap and certain executives of violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by making materially false and misleading statements about how prepared the company and its advertisers were for Apple’s privacy changes.
The $65 Million Settlement: What You Need to Know
Settlement Amount and Significance
The $65 million settlement reached after an all-day mediation session on September 3, 2025, represents a tremendous result for investors. This amount is almost six times more than the $11.3 million median settlement for securities class actions from 2015-2023, and $55 million more than the $10 million median settlement for securities cases in the Ninth Circuit during that period.
The settlement received preliminary court approval on December 4, 2025, and the final approval hearing is scheduled for April 23, 2026, at 8:30 a.m. PT before Judge George H. Wu at the U.S. District Court for the Central District of California.
Who Qualifies for Payment
You’re eligible to file a claim if you purchased or otherwise acquired Snap Inc. publicly traded securities or call options, or sold Snap put options, between February 5, 2021, and October 21, 2021, inclusive, and were damaged thereby. This case is officially titled In re Snap Inc. Securities Litigation, Case No. 2:17-cv-03679-SVW-AGR (C.D. Cal.).
Certain persons are excluded from the settlement class as detailed in the Stipulation of Settlement available at SnapSecuritiesSettlement.com.
How to File Your Claim: Step-by-Step Guide
Claim Filing Deadline and Methods
The deadline to file your claim is May 6, 2026. This is a hard deadline—claims filed after this date will not be processed. You have two options for filing:
- Online: Visit SnapSecuritiesSettlement.com and complete the electronic claim form
- By Mail: Download the PDF claim form, complete it, and mail it postmarked by May 6, 2026, to: Snap Securities Settlement, c/o A.B. Data Ltd., P.O. Box 173101, Milwaukee, WI 53217
Required Information and Documentation
To file your claim, you must provide the last four digits of your Social Security number or taxpayer identification number, along with detailed purchase, acquisition, and sale information for all Snap securities transactions during the class period.
You’ll need to submit documentation supporting all Snap securities transactions between February 5, 2021, and October 21, 2021. Acceptable proof includes brokerage statements showing purchase and sale dates, confirmation slips from your broker, and account statements covering the class period. Review your brokerage statements carefully and gather all transaction records before starting your claim.
Understanding Your Potential Recovery
The amount each class member will receive depends on several factors, including the number of valid claims filed, the total recognized losses across all claimants, and your individual purchase and sale dates and prices. The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation.
For Snap common stock purchased during the class period and sold before October 22, 2021, the recognized loss amount is $0. For shares sold from October 22, 2021, through January 19, 2022, the recognized loss is calculated as the lesser of: the artificial inflation per share at purchase, your purchase price minus the applicable post-disclosure average closing price, or your purchase price minus your sale price.
Payments will be issued after the court grants final approval of the settlement and any appeals are resolved. Similar to other major settlements like the Kraft Heinz class action lawsuits, processing can take several months after final approval.
What Happens If You Don’t File a Claim
Automatic Inclusion vs. Active Participation
If you’re a settlement class member and don’t submit a valid claim by May 6, 2026, you won’t receive any payment from the settlement fund. However, you’ll still be bound by any judgment entered by the court, including the releases of claims against Snap and the other defendants.
If you wish to exclude yourself from the settlement class entirely—preserving your right to pursue your own lawsuit—you must submit a written request for exclusion that’s received by March 26, 2026. The exclusion process is explained in detail in the official settlement notice.
Critical Deadlines You Cannot Miss
Here are the key dates for the Snap Securities Settlement:
- March 26, 2026: Deadline to exclude yourself from the settlement
- April 23, 2026: Final approval hearing at 8:30 a.m. PT
- May 6, 2026: FINAL DEADLINE to file your claim
For questions, contact the claims administrator at (877) 777-9249 or [email protected].
Frequently Asked Questions
How much money will I receive from the $65 million settlement?
The exact amount depends on how many valid claims are filed and your individual losses. The settlement administrator calculates recognized losses based on when you purchased and sold shares, and payments are distributed pro rata. If you held shares through the disclosure on October 22, 2021, you likely have higher recognized losses than those who sold before that date.
Do I need a lawyer to file a claim?
No. You can file your claim yourself online or by mail without hiring an attorney. The process is straightforward—simply gather your transaction records and complete the claim form. However, if you have questions about your eligibility or calculation of losses, you may consult with securities litigation counsel.
What if I bought and sold Snap stock multiple times during the class period?
You must report all Snap securities transactions (purchases, acquisitions, and sales) during the class period from February 5, 2021, through October 21, 2021. The settlement administrator will calculate your net recognized loss across all transactions. Make sure your documentation covers every transaction.
Can I still participate if I sold my Snap shares before October 22, 2021?
Yes, you’re still part of the settlement class if you purchased during the class period, but your recognized loss may be $0 or lower than investors who held shares through the October 22, 2021 disclosure. The plan of allocation addresses different sale dates and calculates recognized losses accordingly, similar to how Rivian class action lawsuits handle various transaction scenarios.
What happens if I miss the May 6, 2026 deadline?
If you miss the May 6, 2026 claim filing deadline, you will not receive any payment from the settlement fund. There are typically no extensions granted, so mark your calendar and file as early as possible. Set a reminder for at least two weeks before the deadline to allow time to gather documentation.
Did Snap admit wrongdoing in this settlement?
No. Snap and the named defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs, and delays of further litigation. The settlement does not constitute an admission of fault or liability by any defendant, which is standard in securities class action settlements like the Hasbro securities fraud class action lawsuit.
How can I check if my claim was received?
After submitting your claim online or by mail, you should receive confirmation from the settlement administrator. You can also contact A.B. Data Ltd. at (877) 777-9249 or check the settlement website for claim status updates. Keep copies of all submitted documentation for your records.
Last Updated: January 24, 2026
Disclaimer: This article provides general information about the Snap Securities Settlement and is not legal advice. For case-specific guidance, consult with qualified securities litigation attorneys or contact lead counsel Saxena White P.A. for investor-specific questions.
Don’t let your claim deadline pass. Visit SnapSecuritiesSettlement.com today to protect your investor rights and file your claim before May 6, 2026.
Stay informed, stay protected. — AllAboutLawyer.com
Sources:
- Official Settlement Website: SnapSecuritiesSettlement.com
- Case No. 2:17-cv-03679-SVW-AGR (C.D. Cal.)
- Saxena White P.A. Settlement Announcement (January 21, 2026)
- Securities Exchange Act of 1934, Sections 10(b) and 20(a)
- SEC Rule 10b-5
- U.S. District Court for the Central District of California Court Records
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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