Instagram’s threat forces Snapchat into $180 million settlement

Instagram’s threat forces Snapchat into $180 million settlement

- Snapchat will soon settle its investors with $187.5 million after they filed a class-action suit against the company

- The class action is with respect to the failure of the company to inform its investors about the threat posed by Instagram

- Snapchat would pay $100 million of the amount from its earnings while the balance will come from its insurance

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Snap Inc, parent company of social media service company Snapchat, has agreed to a $187.5 million settlement for its investors.

This comes in the wake of a lawsuit filed against the company for failing to reveal the degree of threat from Instagram, another social media platform.

The class lawsuit was initiated by the investors after the company’s Initial Public Offering (IPO) in 2017.

Instagram’s threat ‘forces’ Snap to agree to over $180 million settlement to investors

Evan Spiegel, Snapchat's founder Source: Business Insider
Source: UGC

Briefly.co.za understands that details of the agreement to pay the settlement were signed and revealed in the company’s quarterly earnings statement on Tuesday, 4 February.

Per a report by Business Insider, Snap intends to pay $100 million for the lawsuit out of its earnings statement with the balance coming from its insurance.

READ ALSO: Rupert, Ramaphosa, Gordhan and more: Malema takes aim at elite

Meanwhile, Briefly.co.za has learned that Kenya has started work on Africa’s first hybrid power plant, which costs $145 million.

Information available shows that the project is the result of the combined efforts of the Kenya Investment Authority (KenInvest) the Meru County Government and global renewable energy developers, Windlab.

Described as ‘The Meru County Energy Park’, the project is expected to be a large-scale facility that combines wind, solar PV and battery storage.

When completed, the plant is expected to produce a total of 80MW of power to serve over 200 000 households. It is also expected to have 20 wind turbines and over 40 000 solar panels, Business Insider reports.

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Source: Briefly.co.za

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