Snap says DOJ, SEC investigating its IPO disclosures

Snap says DOJ, SEC investigating its IPO disclosures
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Snap Inc. told Reuters Tuesday that the Justice Department and Securities and Exchange Commission subpoenaed the social media company about their March 2017 initial public offering. 

Snap, the parent company of mobile app Snapchat, said that it fulfilled government subpoenas and other requests for information.

The inquiries are reportedly related to a shareholder lawsuit claiming Snap misled the public about how competition from Facebook's Instagram service affected the app's growth.

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“While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram,” the company told Reuters.

Snapchat has faltered since their initial move to go public. Their shares closed at $6.71 on Tuesday, down from their first offering price of $17.