Some Apple employees have become disillusioned with the group's culture, where some have thrived while others feel sidelined.Technologyread more
Biden has shown staying power at the top of a jammed Democratic field even as polling numbers for Sanders, Warren and Harris wax and wane.2020 Electionsread more
The FDIC on Tuesday votes to approve a five-agency revision of the post-crisis regulation known as the Volcker Rule.Financeread more
The yield curve is the only economic indicator pointing to a recession, according to Credit Suisse.Marketsread more
Makan Delrahim, the assistant attorney general for the antitrust division, said a large group of bipartisan state attorneys general have spoken to the Justice Department about...Technologyread more
Stocks slipped on Tuesday as investors digested a sharp rebound from a strong sell-off last week.US Marketsread more
With the official launch of the Apple Card, Goldman Sachs has embarked on a multi-decade journey to becoming a leader in consumer banking, CEO David Solomon says.Financeread more
These are the stocks posting the largest moves midday.Market Insiderread more
The move comes as Facebook continues to grapple with its privacy practices and lawmakers' scrutiny over how it uses personal data to display ads. But it probably won't have...Technologyread more
For investors still haunted by last week's monster sell-off, the market's comeback is set to last, according to J.P. Morgan's quant guru.Marketsread more
An under-the-radar hedge fund is ruling the industry with a nearly 30% return this year on its long positions, and it's more than doubling its bet on gold.Marketsread more
The U.S. Justice Department and Securities and Exchange Commission have subpoenaed Snap for information about its March 2017 initial public offering, the social media app maker told Reuters on Tuesday.
Snap said in a statement it has responded to the government subpoenas and other requests for information.
The previously unreported federal inquiries follow an ongoing shareholder lawsuit in which investors allege that Snap misled the public about how competition from Facebook's Instagram service had affected the company's growth.
Snap said it believes that the federal regulators "are investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures."
"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 said. Snap's Snapchat messaging app has posted disappointing user growth since the company's $3.4 billion IPO, and despite above-expectations sales growth and narrowing losses, its shares have tumbled. They closed at $6.71 on Tuesday, down from their initial offering price of $17.
The company described the lawsuit as "meritless" and said its pre-IPO disclosures were "accurate and complete." It said it would continue to cooperate with the SEC and Justice Department. Subpoenas can compel parties to provide materials that authorities want to review.
Snap acknowledged the probes after the U.S. government made a sealed filing in the shareholder lawsuit last Wednesday.
The complaint, filed in May 2017 in U.S. District Court in Los Angeles, also alleges that Snap did not disclose a sealed lawsuit brought before the IPO in which a former employee alleged the company had misrepresented some user metrics.
A federal court ordered that whistleblower case to arbitration in April. The shareholder lawsuit further alleges that Snap misrepresented its use of smartphone notifications and other "growth hacking" tactics to spur Snapchat usage.
Judge Stephen V. Wilson in June denied Snap's motion to dismiss the lawsuit.
Plaintiffs later filed to certify it as a class action. Snapchat, which reported 158 million daily users prior to the IPO, peaked at 191 million in this year's first quarter and fell to 186 million in the third quarter.
Snap's investor prospectus warned that Instagram's new ephemeral-posting feature, Stories, copied one of Snapchat's core elements and "may be directly competitive."
Investors allege that Snap underplayed the risk, contending that the company should have attributed slowing user growth in late 2016 to Instagram.