Snap Inc. (NYSE: SNAP) announced today an amended stipulation of compromise and settlement executed on December 15, 2023, by the parties to the lawsuit in the Court of Chancery of the State of Delaware captioned Greater Pennsylvania Carpenters' Pension Fund v. Snap Inc. et al., docket no. 2022-0679-PAF.
According to the press release, the action, which was brought by a stockholder of Snap Inc. asserting claims on behalf of itself and a class and/or derivatively on behalf of the company, is pending in the court. The action has been preliminarily certified for the purposes of settlement as a non-opt-out class action on behalf of the class, defined as all record and beneficial holders of shares of Snap Class A common stock that were issued and outstanding as of July 19, 2022.
The proposed settlement, if approved by the court, will resolve all claims in the action as against defendants, including Snap and certain individuals. A settlement hearing is scheduled to be held on February 26, 2024, for the court to determine various aspects of the settlement, including the fairness, reasonableness, and adequacy of the proposed settlement.
Snap Inc. provided further details about the settlement: "Defendants have nevertheless determined to settle the action on the terms and conditions set forth in the amended stipulation to eliminate the uncertainty, risk, burden, and expense of further litigation, and to permit the operation of Snap without further distraction and diversion of its board and personnel with respect to the action."
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,180 | $1,716 | $2,507 | $4,117 | $4,602 | $4,545 |
| Revenue Growth | n/a | 45.33% | 46.11% | 64.25% | 11.78% | -1.24% |
| Operating Margins | -107% | -64% | -34% | -17% | -30% | -32% |
| Net Margins | -106% | -60% | -38% | -12% | -31% | -30% |
| Net Income (MM) | -$1,256 | -$1,034 | -$945 | -$488 | -$1,430 | -$1,363 |
| Net Interest Expense (MM) | $4 | $25 | $97 | $18 | $21 | $22 |
| Depreciation & Amort. (MM) | $92 | $87 | $87 | $119 | $202 | $165 |
| Earnings Per Share | -$0.97 | -$0.75 | -$0.65 | -$0.31 | -$0.89 | -$0.87 |
| EPS Growth | n/a | 22.68% | 13.33% | 52.31% | -187.1% | 2.25% |
| Diluted Shares (MM) | 1,301 | 1,375 | 1,456 | 1,559 | 1,608 | 1,626 |
| Free Cash Flow (MM) | -$810 | -$341 | -$225 | $223 | $55 | $2 |
| Capital Expenditures (MM) | $120 | $36 | $58 | $70 | $129 | $205 |
| Current Ratio | 5.73 | 5.29 | 5.0 | 5.7 | 4.32 | 4.83 |
