17. Subsequent Events

On January 17, 2020, we reached a preliminary agreement to settle the securities class actions that arose following our IPO. The preliminary settlement agreement was signed in January 2020 and provided for a resolution of all of the pending claims in the securities class actions for $187.5 million. The agreement is subject to approval by the federal and state courts before which the securities class actions are pending. The terms of the settlement include a full release of all claims against all defendants including Snap, its officers and directors, and the underwriters for our IPO. We evaluated this subsequent event, concluding it provided additional evidence about a condition that existed as of December 31, 2019. In the fourth quarter of 2019, we recorded legal expense, net of amounts directly covered by insurance, of $100.0 million for the expected

settlement of the securities class actions. The amount was recorded in general and administrative expense in our consolidated statements of operations.