Snap shares traded lower Monday morning, with the stock down 3.52% at $5.22 in premarket trading, as investors weighed a federal appeals court ruling and heavy insider selling. The 9th U.S. Circuit Court of Appeals rejected tech industry efforts to dismiss more than 3,000 consolidated lawsuits, finding that Section 230 of the Communications Decency Act functions as an affirmative defense rather than blanket immunity from suit. The decision allows claims alleging Snapchat's core design features promote youth addiction to move toward trial. Separate regulatory filings also showed Chief Technology Officer Robert Murphy sold 4 million Class A shares for about $21.6 million under a Rule 10b5-1 trading plan (a pre-scheduled insider trading plan). The combination of legal uncertainty and large executive stock sales has added to bearish sentiment around Snap.