WATCH: Unsealed lawsuit puts Snapchat CEO in eye of PR storm

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IN what must be a relief for Uber after weeks of PR crisis after PR crisis, Snapchat is now in the middle of a “he said, she said” row. An unsealed lawsuit had revealed CEO Evan Spiegel allegedly saying the ephemeral photo and video app was “only for rich people”.

Former¬†employee Anthony Pompliano accused Spiegel of making the remarks during a meeting to discuss Snapchat’s user growth two years ago. Pompliano alleges Spiegel had said: “The app is only for rich people. I don’t want to expand into poor countries like India and Spain.”

Snap Inc. – Snapchat’s parent company – initially argued against unsealing the lawsuit by saying it contained trade secrets, but then withdrew its effort because it had “nothing to hide”. The company described Pompliano as a “disgruntled employee fired for poor performance”, reported Variety.

SEE ALSO: Snapchat reportedly files for biggest tech IPO in years, valued at $25bn

The company has, of course, denied the remarks, but that hasn’t stopped the backlash. Along with numerous online protests – including a #BoycottSnapchat hashtag that started trending on both Twitter and Facebook – Snap’s shares dropped 1.5 percent earlier this week, putting it on track to close at its lowest level in nearly a month.

That would have been bad news for Snap, especially as it only just went public last month at US$3.4 billion, making it one of the biggest tech IPOs since Alibaba in 2014. However, its shares have recovered since Monday.

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