Securities class action lawsuit sends Snap Inc (SNAP) plunging 2%

Snap Inc (NYSE:SNAP) can’t seem to catch a break. Whenever shares are on the rebound, some news story tends to shatter the stock.

Case in point, the social media outlet was slapped with a securities class action lawsuit on Tuesday after it was alleged that the company inflated its user growth with false and misleading statements.

Snapchat issued a statement soon after the lawsuit was made public:

“Lawsuits like this are not uncommon and we are focused on growing our business.”

At the time of this writing, Snap shares are down $0.45, or 2.17%, to $20.30. This comes soon after the stock cratered more than 20 percent following a disappointing first-quarter earnings report.

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