Snap said a lawsuit which prompted US government officials to demand information regarding an IPO is meritless, Reuters reported.

The lawsuit was filed in May 2017 (although it remained unreported until now) by investors who were concerned the company had not been honest about how rival Instagram was hurting its growth in the second half of 2016. The suit also alleged Snap had not disclosed a lawsuit by a former staff member who accused the company of fudging some metrics, including daily active user (DAU) numbers.

“We continue to believe the class action’s claims are meritless and our IPO disclosures were accurate and complete,” Snap said in a statement to Reuters.

It explained the US Justice Department (DoJ) and Securities and Exchange Commission are now “investigating issues related to the previously disclosed allegations asserted in the class action about our IPO disclosures”.

“While we do not have complete visibility into these investigations, our understanding is that the DoJ is likely focused on IPO disclosures relating to competition from Instagram,” the company stated, adding it will cooperate with the government.

While Snap hasn’t had a smooth ride since going public, last month it reported a lower net loss for Q3 compared with the same period of 2017 after increaseing DAUs for its messaging app.

However, it is no secret Instagram’s clone of Snapchat Stories enjoys better performance metrics and Snap has been plagued by a backlash from users regarding a revamped version of its app during 2018, while also announcing job cuts.