Snapchat is trying to put out a PR firestorm in India.
Snap (SNAP.N) shares dropped 1.5% as it faces a backlash over alleged comments made by CEO Evan Spiegel about not being interested in promoting growth in the "poor" countries of Spain and India. "This app is only for rich people", Spiegel is alleged to have said.
The legal document filed in a Los Angeles state court concerns claims made in a lawsuit filed by an employee who left the company in 2015, and Snap has said it considers the litigation to be a publicity stunt. Among a litany of allegations against Snap, Pompliano says that CEO Evan Spiegel once shot down his suggestion to pursue growth in certain global markets.
According to Variety magazine Snapchat has previously argued that Pompliano's suit contained "trade secrets that could damage the company and help its competitors". It's available worldwide to download for free.
The comments have caused a major furor in India, with thousands of Indians down-rating the app on online stores and uninstalling it.More news: Israeli troops kill Palestinian who rammed West Bank bus stop: army
Responding to the outrage that has followed in India, Snap's spokesperson shared with media, "Obviously, Snapchat is for everyone!"
In 2013, a different group of hackers released a database of what it claimed contained 4.6 million Snapchat users, revealing usernames and passwords.
Pompliano's lawsuit accuses executives of exaggerating user data to mislead advertisers.
"I think one thing that people probably don't think about as much as we do is innovation to serve everyone in the community, not just the high end, right?"