Business Communication and Character

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Snap Inc. May Have Falsified Metrics

Snap IncAs Snap Inc. plans for an IPO, a former employee says he was fired for trying to reveal falsified metrics. Anthony Pompliano claims he was terminated only three weeks into his tenure at Snap Inc. running the new user growth and engagement team. Pompliano also charges Snap Inc. with hiring him from Facebook to get proprietary information.

"We've reviewed the complaint. It has no merit. It is totally made up by a disgruntled former employee," said Mary Ritti, Snap's vice president of communications. The company also said Pompliano was fired because he was "incompetent" and "not adequately performing in his position." 

Pompliano's attorney said, "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." (Snapchat is the former name of Snap Inc.) The claim also charges Snap Inc. with damaging the former employee's reputation and ability to find new work.

Business Insider posted the entire court filing, but several pages are heavily redacted, like the one shown here. These darken parts may represent proprietary Snap Inc. information.

This isn't the first time Snapchat's integrity has been questioned. In 2014, the company settled a claim with the Federal Trade Commission that it exaggerated how easily images sent through the app disappear. The news led to many doubting the safety of sending personal images.

Discussion:

  • In what ways could Snap Inc. exaggerate metrics to potential investors? What do you think is the issue here?
  • How credible do you find Pompliano's claim? How can a judge decide such a claim?