that it had signed a preliminary agreement to pay $187.5 million to settle a class action lawsuit filed against the company in 2017 by investors following its initial public offering..
However, when Snap reported quarterly earnings on Tuesday evening, it also shared the financial details of the settlement for the first time. Judging from the language Snap used in describing it, it seems that the settlement is awaiting court approval to finalize. Notably, Snap said in its earnings report that it had „recorded legal settlement expense, net of amounts directly covered by insurance, of $100.0 million,“ seeming to indicate that the company expects to pay a little over half of the proposed settlement out of pocket, with the balance paid for by insurance.
Several investors brought the suit against Snap in 2017, in the wake of its tumultuous IPO. They alleged that Snap had concealed negative information ahead of going public about competition Snapchat faced from Facebook-owned Instagram.