Snap Denies Child Exploitation Allegations, Wants Lawsuit Dismissed

Snap Inc SNAP has filed a motion to dismiss a lawsuit brought by New Mexico Attorney General Raúl Torrez. The lawsuit alleges that the company’s platform facilitates child exploitation.

Snap argues that the lawsuit misrepresents its practices and is based on flawed interpretations of internal documents and investigatory actions.

The lawsuit claims that Snap violated state laws by promoting unsafe practices through features like disappearing messages, which allegedly enable the spread of exploitative material.

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However, Snap contends that the Attorney General’s office created a decoy account that proactively engaged with inappropriate accounts, contrary to the lawsuit’s claims, the Verge reports.

Snap insists the investigation’s findings are inaccurate and highlights that federal law prohibits storing child sexual abuse material (CSAM) on its servers. The company maintains that it reports such content to the National Center for Missing and Exploited Children, as required by law, and that the Attorney General’s framing of its practices is misleading.

The New Mexico Department of Justice criticized Snap’s motion to dismiss, accusing the company of deflecting attention from the harm caused to children on its platform.

A spokesperson stated, “The evidence—including Snap’s internal documents—proves the company prioritizes profits over safety.” The department emphasized the urgent need for stricter safeguards to protect young users.

Snap argues that the lawsuit conflicts with federal protections under Section 230, which shields platforms from liability for user-generated content. The company also contends that proposed age-verification mandates could violate the First Amendment. Snap describes its safety-related statements as aspirational and not legally binding guarantees of risk elimination.

Social media companies — Meta Platforms Inc’s META Facebook and Instagram, Snapchat, Elon Musk’s X, formerly Twitter and ByteDance-owned TikTok — face regulatory scrutiny over child safety concerns.

Snap posted a third-quarter revenue of $1.373 billion, exceeding the $1.358 billion consensus estimate. Adjusted earnings reached 8 cents per share, beating the 5-cent analyst estimate. Revenue increased 15%, while daily active users grew 9% to 443 million. The company reported $116 million in operating cash flow and $72 million in free cash flow.

The quarter ended with $3.2 billion in liquidity. Snap forecasts fourth-quarter revenue of $1.51 billion—$1.56 billion, slightly below the $1.558 billion analyst estimate. The board approved a share buyback of up to $500 million.

Price Action: Snap stock is down 0.38% at $10.59 premarket at last check Friday.

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