The Snap securities settlement is a $65 million class action resolution in Black v. Snap Inc., approved on April 24, 2026, by Judge George H. Wu in the U.S. District Court for the Central District of California. It resolves claims that Snap Inc. and two top executives misled investors during 2021 about how badly Apple’s new privacy rules would hurt Snap’s advertising business. Investors who bought Snap stock or traded Snap options during the class period can share in the fund on a pro rata basis.
Who Is Covered by the Settlement
The class includes anyone who purchased or acquired Snap common stock or call options, or who sold Snap put options, between February 5, 2021, and October 21, 2021, and who was damaged by the transaction.1Snap Securities Settlement. Black v. Snap Inc. Settlement
One eligibility rule matters more than any other under the plan of allocation: you must have held the security through the market close on October 21, 2021, the date of the alleged corrective disclosure. If you sold before that date, your recognized loss is zero, even if you traded within the class period. Transactions are matched first-in, first-out.2Saxena White. Notice of Pendency of Class Action, Certification of Class, and Proposed Settlement
Claim Deadline and How to File
The claim filing deadline was May 6, 2026. Claims could be submitted online or by mail to the claims administrator, A.B. Data, Ltd., in Milwaukee, Wisconsin.1Snap Securities Settlement. Black v. Snap Inc. Settlement
What Claimants Can Expect to Receive
The net settlement fund is distributed pro rata, weighted by each claimant’s Recognized Loss Amount. The court approved $19.5 million in attorneys’ fees, up to $715,000 in litigation expenses, and a $15,000 service award for the lead plaintiff, all deducted from the fund before distribution.3ClaimDepot. Snap Securities Settlement
Assuming full class participation, the settlement notice estimated average recoveries of roughly $0.14 per damaged share of common stock, $3.82 per damaged call option, and $6.66 per damaged put option before fees. After fees and expenses, those figures drop to about $0.05 per share, $1.19 per call option, and $2.07 per put option.2Saxena White. Notice of Pendency of Class Action, Certification of Class, and Proposed Settlement Actual payouts will depend on how many valid claims are filed and the size of each claimant’s recognized loss.
What the Case Alleged
Investor Kellie Black filed the complaint in November 2021 against Snap Inc., CEO Evan Spiegel, and former Chief Business Officer Jeremi Gorman. The suit alleged that during the class period, the defendants made false and misleading statements about how well Snap was prepared for Apple’s App Tracking Transparency rollout and how severely those privacy changes would affect ad revenue.
Apple’s 2021 privacy update restricted apps’ ability to track users across iPhones and iPads. Snap’s business depends on targeted digital advertising, so the change mattered. The complaint alleged that executives oversold Snap’s ability to adapt while the internal impact was worse than disclosed. When Snap reported third-quarter results in October 2021, its stock fell roughly 25%.
The claims were brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
How the Case Got to $65 Million
Judge Wu twice dismissed earlier versions of the complaint, but the Ninth Circuit reversed in late 2024, finding that the lead plaintiff had adequately alleged both scienter and falsity.4Saxena White. Snap Inc. Discovery then produced more than 30,000 documents, and the parties mediated in September 2025 before retired Judge Layn R. Phillips, who recommended a $65 million resolution that both sides accepted.5Saxena White. Stipulation of Settlement, Black v. Snap Inc.
Two factors shaped the figure. By mediation, the surviving claims had narrowed to a single alleged misstatement from April 22, 2021, which limited the trial upside. And Snap’s directors’ and officers’ insurance policies were finite; lead counsel concluded that continued litigation would rapidly deplete them, creating a real risk that the class could recover less than $65 million or nothing at all.2Saxena White. Notice of Pendency of Class Action, Certification of Class, and Proposed Settlement The result was more than six times the $10 million median securities class action settlement in the Ninth Circuit over the prior decade.6Levi & Korsinsky. Memorandum in Support of Preliminary Approval, Black v. Snap Inc.
Judge Wu granted preliminary approval on December 4, 2025, held the final approval hearing on April 23, 2026, and signed the final judgment the next day.1Snap Securities Settlement. Black v. Snap Inc. Settlement
Not the Same as the 2017 IPO Settlement
This $65 million case is separate from an earlier Snap securities case tied to the company’s 2017 initial public offering. That litigation, In re Snap Inc. Securities Litigation, alleged that Snap misled IPO investors about slowing user growth and competition from Instagram Stories. It settled for a combined $187.5 million across federal and California state court actions, with final approval of the federal portion on March 9, 2021.7Block & Leviton. Snap8Snap Securities Litigation. Federal Action
The two cases involve different class periods, different factual allegations, and largely different defendants. If your Snap trades were in 2017, they belong to the IPO case, not the Black settlement.