Snap facing regulatory scrutiny over pre-IPO disclosures

SEC, Justice Dept. may be investigating claims of improper disclosures

Snap Inc. is facing scrutiny from regulators about its disclosures to investors ahead of its 2017 initial public offering.

The disappearing-messages company has received subpoenas and requests for information from the Justice Department and Securities and Exchange Commission, a spokesman for Snap said Tuesday.

Snap SNAP, +0.90% said in a statement it believes the regulators are investigating allegations that it didn’t make proper disclosures to investors related to its IPO, issues that had been previously raised in a class-action lawsuit.

“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,” a spokesman for Snap said in a statement.