*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.
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.
