Snap Inc. Gets Sued For Allegedly Inflating $25B IPO Prospects By Spurned Ex-Employee

Snap Inc., the newly minted company behind Snapchat, is about to go live on its IPO this coming March. However, a former employee is about to throw a wrench into the whole affair by suing the social media entity. The employee is accusing the company of inflating its numbers pre-IPO, which lured in investors with false data. According to him, when he refused to participate in the supposed scheme, he was terminated.

As Quartz notes, the whole thing sounds a bit like a novel in the romantic drama or thriller genre where a shattered relationship leads to revenge or justice. The employee in question is Anthony Pompliano and he was fired from the company while working there for only three weeks.

According to the lawsuit that he filed, Pompliano objected to the company’s practices of basically lying to investors and making Snap Inc. seem more valuable than it actually is. Considering how Snap Inc. is currently valued at over $25 billion, this appears to have been a very effective strategy. He also claims that the attitude is pervasive throughout all levels of the company, which basically left him as the odd one out.

Right now, these claims have not been proven and the company is flatly denying any truth to the allegations. Looking at the details in the filings, however, it is understandable how Pompliano’s case might be viewed as just a way for him to get attention.

Aside from simply framing himself as a wrongly-terminated worker, it would appear that the plaintiff is also a “decorated war veteran” and a recipient of numerous awards for his services to the country. It would also seem that Pompliano was taken away by Snap from Facebook through a period of persistent courtship.

Based on the wording of the document, it was almost as if Snap CEO Evan Spiegel wanted him more than anything. Then, after a brief period of an ecstatic working relationship, it all ended on a sour note.