Ex-employee sues Snapchat, alleges it misled investors: Hollywood Reporter
A former employee
has dragged Snapchat to court accusing the messaging app of misleading
investors and trading partners to drive up its initial public offering, the
Hollywood Reporter said citing a court document.In the lawsuit filed on Wednesday in a California
court by Anthony Pompliano, who earlier worked with Facebook Inc, also alleged
he was fired for being a whistleblower, the magazine reported. bit.ly/2iRTH07Snap Inc, Snapchat's parent company, rejected the allegations."We've reviewed the complaint. It has no merit. It is
totally made up by a disgruntled former employee," a Snap spokeswoman told
Reuters in an emailed statement.The ex-employee, who led Snapchat's growth team during his
three weeks with the company, said he learned of misrepresentations and urged
executives to rectify the problems. Pompliano claimed he was pressurized to
breach Facebook's confidential and proprietary information, the magazine said."Snapchat fraudulently induced Pompliano away from
Facebook to run Snapchat's new user growth and engagement team by falsely
representing to him, among other things, the company's growth," the
Hollywood Reporter quoted his counsel as saying in the court document, a
partially obscured copy of which was posted on the magazine's website.Snapchat filed for an IPO in November and is one step closer
to the biggest U.S. stock market debut since 2014.The case was
filed in the Superior Court of the State of California for the County of Los
Angeles.(Reporting by Rama Venkat Raman and Subrat Patnaik in
Bengaluru; Editing by Gopakumar Warrier)
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