there is a lawsuit pending that focuses on snapchats potential misrepresentation of instagrams size and effect on the mkt

investors should've done their own due diligence on that, what i believe is more likely is that snapchat misrepresented its user numbers pre IPO as alleged by a fired employee in 2015

investors wouldn't have cared if the stock went up, but it went down so they need to find an actual tangible way that snapchat lied to them to recoup any money from a bad bet