Snapchat CEO Says: This app is only for rich people. I don’t want to expand into poor countries like India and Spain
Snap’s lawyers this week even went so far as to call Pompliano “thirsty” in a recently filed motion accompanying the release of the unredacted complaint.
Before this year, a former Snapchat worker named Anthony Pompliano filed suit against Snap Inc. for inflating user numbers and flat out lying to investors about the firm’s long-term potential for increase. Pompliano’s litigation was initially filed this past January, albeit in redacted form. This week, an unredacted version of the lawsuit was made public and, unsurprisingly, it comprises some shocking revelations.
The most headline-grabbing blurb (via Variety) alleges that Pompliano while attending a meeting regarding Snapchat’s increase prospects, voiced concern about unsatisfactory user adoption in international markets. Not even letting Pompliano complete his purpose, the lawsuit maintains that Pompliano was interrupted by Snap CEO Evan Spiegel and stated: “This app is only for rich people. I don’t need to expand into poor countries like India and Spain.”
While it’s easy to take this story and run with it, some added context may be worth mentioning. First of all, it’s difficult to ignore the incongruity of Pompliano’s allegations. It’s possible, but it’s difficult to draw any sound conclusions early on as tends to be the case with litigations imposed by employees.
As for inflated user metrics, Pompliano promises that Spiegel purposefully told investors that Snapchat boasted more than 100 million daily active users when in reality the amount was someplace in the 96 million range. Per the litigation, Spiegel said aloud that the misrepresentation was “no big deal.” The suit also claims that Snapchat lied to investors about user retention rates.
In response to the allegations, Snap’s attorneys have emphatically said that the company “did not give investors misstated back user metrics nor did Snap employees commit any one of the panoplies of alleged bad actions” Pompliano’s charge inaugurates.
As for Pompliano’s motivations, Snap earlier this year said he was simply making things up after being fired at work after just three weeks. “Pompliano was a dissatisfied employee fired for poor performance, ” the business said this past January. “To rationalize his dismissal, Pompliano has ginned up preposterous claims about Snap giving investors fictitious user metrics back in 2015. Those accusations are certain to grab headlines. Nevertheless, they don't get reality.”
Snap’s lawyers this week even proceeded as far as to call Pompliano “thirsty” in a recently filed motion accompanying the release of the charge that was unredacted.
“In his latest payment that is remarkable, Pompliano doubles down on the principal canard from his charge — that Snapshot gave investors misstated back user metrics in 2015 — by declaring that Snap is currently misleading investors. Both halves of that remarkable claim are fictitious. And they demonstrate that attention is grown for by the thirstier Pompliano, the more he starves his filings of truth and common sense.”