Snapchat ex-employee claims company faked growth stats to boost value

08 January, 2017, 00:33 | Author: Celia Hoffman
  • Ex-Employee Files a Lawsuit Against Snapchat with Massive Allegations

Anthony Pompliano, who has been accused of being a whistleblower, previously worked at Facebook before Snapchat poached him to head up their new user growth and engagement team.

In a heavily redacted complaint filed to the Los Angeles Superior Court this week, Pompliano says that he was sacked just three weeks into his job because he spoke out about the fudged numbers.

Un-redacted snippets from the lawsuit indicate that there are two performance metrics that the company knew were fraudulent, but still used during the recruitment process to induce Pompliano to jump from Facebook to Snap.

Snapchat, as we would expect, has denied the suit's claims.

He said he was sacked after blowing the whistle on the company's misrepresentations with several higher-ups.

Pompliano didn't respond to a request for comment.

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A Snap spokeswoman told The Los Angeles Times that the accusations were made up by a disgruntled former employee. "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".

Pompliano says he is a military veteran of the Iraq war in 2008-09. For that reason, we're curious to see how his suit plays out, and if any of the misrepresentations he alleges end up in the public view.

"Mr. Pompliano was terminated because he refused to participate in a scheme to deceive the public and artificially inflate Snapchat's valuation in anticipation of its" initial public offering, the lawsuit states.

Finally, Pompliano alleged that Snap recruiting him from Facebook to gain proprietary information he was privy to at Facebook. Snapchat fired Pompliano three weeks into his employment after he raised concerns about the metrics with executives internally and urged the company to correct its errors, according to the court document, which redacts details about the disputed metrics.

Large sections of the lawsuit filed in Los Angeles County Superior Court have been blacked out, including references to the exact figures that were allegedly inflated by Snap.

Pompliano claims he tried to blow the whistle - alerting top Snap executives to the misrepresentations the company had made to the public. The suit also alleges Snapchat only hired Pompliano for the "nefarious goal of obtaining Facebook's confidential and proprietary information" and has since "sought to destroy his career and reputation".

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