Snap Investor Drops Lawsuit Over Ad Tool Glitch’s Sales Impact

A Snap Inc. investor voluntarily dismissed his lawsuit alleging the Snapchat owner hid a technical issue that impacted its advertising revenue before reporting underwhelming 2025 second quarter results.

Investor Omar Abdul-Hameed dropped his lawsuit Dec. 19, two weeks after US District Court for the Central District of California Judge R. Gary Klausner named him lead plaintiff. Abdul-Hameed sued Snap, CEO Evan T. Spiegel, and Chief Financial Officer Derek Andersen after Snap attributed a topline revenue growth slowdown to the issue with its ad platform, Ramadan’s timing, and other effects.

• Snap’s stock price plummeted more than 17% the next day, ...