Snapchat filed for an IPO in November and is one step closer to the biggest US stock market debut since 2014. Pompliano said Snapchat tried to pressure him to share proprietary information about Facebook, which would have broken his confidentiality agreement with his prior employer.
Anthony Pompliano alleges he was lured to Snap by the fake metrics and claims he was let go three weeks after joining the company in August 2015 for sounding the alarm, according to a lawsuit filed in Los Angeles Superior Court.
If the allegations in Pompliano's lawsuit are true, it could spell bad news for Snapchat as the company is quickly trying to take itself public, which will nearly definitely result in massive pay days for Snapchat's executives and earliest employees. "Accordingly, post-termination, Snapchat has sought to destroy his career and reputation by waging a smear campaign against Mr. Pompliano, by making false representations concerning the circumstances of his termination". "Snapchat's leadership saw Mr. Pompliano as an impediment to their planned IPO", claims the suit. "ORCRP0017755-topic.html" class="local_link" >Snapchat employee alleged in a lawsuit Wednesday that the company misrepresented its financial state while recruiting him and then pressured him to spill secrets about his time at Facebook. At Facebook, Pompliano led growth and engagement initiatives for Pages.
A spokesperson for Snap Inc said it a statement that the company had reviewed the complaint and "it has no merit".
Pompliano claims that after alerting executives to the practice, he was sacked in retaliation and was then made the target of a "smear campaign" to ruin his reputation and undermine his claims about the falsified numbers.
The company's messaging app, Snapchat, already competes with Facebook for eyeballs and ad dollars. The company has been planning an IPO for as soon as March that could value it around $25 billion, people familiar with the matter have said.
A former Snapchat employee has accused the selfie-slinging giant of illegally inflating its user numbers and misleading investors. The company will now file to maintain the redactions, adds Michaels. He's seeking an injunction to keep Snapchat employees from making any misrepresentations about his termination to third parties and also exemplary damages. He said Snap has told employees and others in the industry that he was incompetent.