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Here's Why Snap Inc. (SNAP) Stock Dipped Again Today

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Shares of Snap (SNAP - Free Report) slipped more than 1.2% in morning trading Thursday after its Facebook-owned rival Instagram announced that its own Snapchat-like feature has more daily users.

Instagram, which was purchased by Facebook for $1 billion in 2012, announced that its Stories feature has surpassed 200 million daily active users, bringing it well ahead of Snapchat’s reported 161 million users.

The announcement comes just a day after a former Snap employee’s accusations that the company inflated its user numbers went public. The claims, which are part of the former employee’s lawsuit against Snap, were revealed after Snap voluntarily unsealed the lawsuit this week.

The lawsuit was filed by Anthony Pompliano, who worked for Snap for three weeks. According to the Financial Times, Snap maintains that Pompliano has no knowledge of the company’s current user figures and claims his accusations are a “publicity stunt.”

“The simple fact is that he knows exactly nothing about Snap’s current metrics. He and his lawyers are—not to put too fine a point on matters—just making things up,” a Snap lawyer said.

According to Pompliano, Snap was intentionally misleading investors about user growth and engagement ahead of its initial public offering. Pompliano also claimed that he was told bogus figures by Snap employees as the company was attempting to lure him from his position at Facebook.

Pompliano’s lawsuit says that after realizing Snap’s figures were not accurate, he was told by CEO Evan Spiegel that it was “no big deal.”

Shares of SNAP dipped more than 2% on Wednesday after the story broke.

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