Snap Sued, Accused Of Faking Growth By Ex-Employee

Snapchat Faces Internal Turmoil Ex Employee Blames Company For Misleading Investors
A former employee of Snapchat blames the company for misleading investors
Author

08 January, 2017

The Debrief: Snapchat Inc have rejected the allegations and claims that they are 'totally made up by a disgruntled former employee'.

Snap hired him in August 2015 to run its user growth and engagement team by lying about its growth, and his "refusal to participate in Snapchat's institutional pandemic of [redacted] to its investors and trading partners led to his unlawful termination", Pompliano says in the January 4 lawsuit.

Pompliano says he was recruited from Facebook based on the false metrics, and when he urged Snapchat to correct them, he was sacked after only three weeks on the job, according to the complaint.

So what exactly is going on here? It's unclear which metrics Pompliano claims were being misrepresented because the complaint is heavily redacted. Snapchat's vice president of finance Drew Boiler, the company's then-vice president of communications Jill Hazelbaker and its then-director of business operations Brian Theisen were some of the Snapchat managers Pompliano alerted about the false metrics, according to the filing.

The former staffer is suing the messaging app's parent company Snap Inc for allegedly preventing him from obtaining employment and is seeking an injunction to keep current Snapchat employees from making any claims about his termination to third parties.

At work? With your gran?

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The lawsuit has stated "Mr. Pompliano was terminated because he refused to participate in a scheme to deceive the public and artificially inflate Snapchat's valuation in anticipation of its initial public offering".

Snap management told company employees and third parties that Pompliano was sacked because he was incompetent, according to the lawsuit, even though he had received no negative reviews.

"Snapchat's leadership saw Mr. Pompliano as an impediment to their planned IPO because he refused to turn a blind eye to Snapchat's misrepresentations", the lawsuit claims.

Pompliano's tenure at Snapchat lasted just three weeks.

Pompliano says he filed the complaint to keep Snap "from continuing to make false representations concerning the circumstances of his termination". Two days later, the suit says, Snapchat offered Pompliano a job with a compensation described to him as "massive and unprecedented".

Snap and Facebook are locked in battle for the attention of consumers and advertisers. We reached out to Snap for a comment but did not immediately receive a response.


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