Snap Inc’s (NYSE:SNAP) Chief Lawyer and General Counsel, Michael O’Sullivan has warned the employees of the firm through a memo that they could be sued or jailed if they happen to leak out the company’s confidential information. The warning was issued last week after the Daily Beast online revealed in detail how the confidential user metrics found at Snapchat features are being utilized, according to Cheddar.
According to the memo sent to all the employees, the company has a zero-tolerance policy for anyone who leaks the Snap Inc’s confidential information. The matter includes the outright leaks, any other informal or casual conversations with news reporters, and other damaging information that one can leak out to the unauthorized people. Any employee who will be found guilty of the offense would lose their job and be subjected to all the legal remedies against them, the memo stated.
Furthermore, O’Sullivan added that apart from losing a job or being jailed, one can also face a personal financial liability even if the staff did not directly benefit from the leaked information. Also, other company stakeholders including the government, investors, customers and other interested third parties can seek their own remedies against the staff for what they disclose.
According to the report, the Snap is renowned for being extremely secretive about its operations. The employees are usually never informed on what tasks they will be working on before they are employed and they have no clue on the kind of the public announcements to be made.
In the recent past, Snap encountered a number of leaks including the unannounced ‘Stories Everywhere’ a feature that allows users to share stories outside the Snapchat App, which the firm essentially regards it to be more harmful to its business. Also, other details about its plan for redesigning its Snapchat app were leaked to the press prematurely. The company is worried about the new trend of leaks since as a public company, the information may affect its shares.