On top of cutting Pompliano loose, his attorney David Michaels alleges Snapchat attempted to smear his reputation. "It is totally made up by a disgruntled former employee", they wrote in an e-mail. The IPO could value Snap at more than $25 billion while raising around $4 billion for the Venice firm to invest in hiring, product research and other initiatives, sources have said. The lawsuit can become a hindrance in the company's plan, which can raise questions about the information it shares about itself.
"Snapchat's leadership saw Mr. Pompliano as an impediment to their planned IPO because he refused to turn a blind eye to Snapchat's misrepresentations", the lawsuit alleges.
DOCUMENT: Read the full complaint in Pompliano v.
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. Much of the lawsuit has been redacted, so we don't know exactly which metrics he is referring to. The company must now file to maintain the redcations, Michaels said. Pompliano is also pursuing a wrongful termination claim through the arbitration process, in accordance with the terms of his contract.
Snap said the lawsuit has no merit.
Pompliano says he filed the complaint to keep Snap "from continuing to make false representations concerning the circumstances of his termination". Analysts estimate the company generated almost $400 million in advertising revenue in 2016.
Pompliano spent three weeks at Snapchat, where he was brought in to run the new user growth and engagement team. He also believes he was hired so Snap would receive confidential information about Facebook, which he refused to give, he said.
The suit accuses Snap Inc of violating California labor law on Misrepresentation Preventing a Former Employee from Obtaining Employment. He alleged that the company told employees that the reason for he was disengaged was because of incompetence.
"This action arises out of the avarice of the small group of executives at the helm of the social media giant Snapchat", the lawsuit states.
An executive claims that Snapchat fraudulently induced him to leave Facebook through an "institutional pandemic" of misrepresentations, then fired him when he complained that it was lying to investors as it prepares for a multibillion-dollar initial public offering.