A securities class action has been filed in the USDC – N.D.CA. against Reddit, Inc. (RDDT) (“Reddit ” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Reddit securities between October 29, 2024, and May 20, 2025, both dates inclusive (the “Class Period”).
Reddit is a social media platform and forum-style website where users share and discuss content through posts and comments, organized into communities called subreddits. Users vote on content, with upvotes pushing posts and comments to the top, and downvotes doing the opposite. It has often been described as “the front page of the internet” due to its curated content and ability to surface trending topics.
The complaint alleges defendants made false and/or misleading statements and/or failed to disclose that:
(1) changes in Google Search’s algorithm and features like AI Overview were causing users to stop their query on Google Search;
(2) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website;
(3) Defendants were aware that the increase in the query term “Reddit” on search engines was because users were getting the sought after answer from Google Search without having to go to Reddit, and not because they intended to visit Reddit;
(4) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term;
(5) Defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and
(6) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
If you purchased Reddit securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.