*By Carlo Versano*
Federal regulators have subpoenaed Snap as part of a probe into its 2017 initial public offering, the company confirmed in a statement to Cheddar.
Reuters first [reported](https://www.reuters.com/article/us-snap-sec-exclusive/exclusive-snap-reveals-us-subpoenas-on-ipo-disclosures-idUSKCN1NJ04O) the subpoenas late Tuesday.
The subpoenas, filed by the Justice Dept. in coordination with the SEC, are believed to be related to a class action lawsuit filed by a group of investors in May 2017 that alleged the company misrepresented how competition from Facebook's Instagram ($FB) was affecting its growth ahead of the $3.4 billion IPO, and misled the public about its user metrics.
In the statement, Snap said: “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."
The social-messaging app has suffered from the competition with Instagram, which launched a near-identical feature to Snapchat's core service in 2016 and now [boasts](https://money.cnn.com/2018/06/28/technology/instagram-stories-users/index.html) double the users. The company has also seen some of its top talent leave, including [most recently](https://www.cheddar.com/videos/snap-vp-content-nick-bell-to-leave) the head of content, Nick Bell.
Snap stock is trading at less than half its IPO price.
Resale platforms do big business – and Mercari just became the first in the U.S. to eliminate all fees for sellers and completely changed how returns work on its platform.
e.l.f.’s affordable price point and makeup and skincare options made it a social media darling – and the company’s CEO says the company even gets product ideas from its audience.
Nearly 40% of Americans choose travel over financial stability, funding trips on credit and sacrificing other budget line items to take a vacation — because live fast or die trying.
Disney shareholders have rallied behind longtime CEO Robert Iger. They voted Wednesday to rebuff activist investor Nelson Peltz and his ally, former Disney chief financial officer Jay Rasulo.
Student loan borrowers have the ability to earn retirement funds pegged to their payments – and the company Summer might be bringing it to your workplace.
It might not be what investors want to hear… but bringing down inflation could mean interest rates stay higher for (even) longer. But it's not all downside.
