Reddit Class Action Lawsuit Filed Over Securities Claims

Bragar Eagel & Squire is pursuing a class action lawsuit against Reddit, Inc. (NYSE:RDDT) on behalf of investors who purchased or acquired securities between October 29, 2024 and May 20, 2025. The lawsuit alleges that Reddit made false and misleading statements during this period. Investors who suffered losses can contact Brandon Walker or Marion Passmore at (212) 355-4648 to discuss their legal rights. The lead plaintiff must apply to the Court by August 18, 2025.

Investors who purchased or acquired Reddit Inc. (NYSE: RDDT) securities between October 29, 2024 and May 20, 2025, are urged to contact Bragar Eagel & Squire to discuss their legal rights. The law firm is pursuing a class action lawsuit against Reddit, alleging that the company made false and misleading statements during the specified period [1].

The lawsuit, filed on behalf of affected investors, claims that Reddit failed to disclose material adverse facts about its business operations and prospects. Specifically, the complaint alleges that Reddit did not disclose changes in Google Search’s algorithm and features like AI Overview, which were causing users to stop their queries on Google Search rather than visiting Reddit. This led to a significant reduction in traffic to the Reddit website, impacting user growth and advertising revenue [2].

The lawsuit further alleges that Reddit was aware of the impact of these algorithm changes but failed to inform investors. As a result, investors suffered damages when the true details entered the market, leading to a series of stock price declines [3].

Investors who wish to participate in the class action must apply to the Court by August 18, 2025. A lead plaintiff will be appointed to represent the class in directing the litigation. Contacting Bragar Eagel & Squire at (212) 355-4648 can provide investors with more information and legal advice.

References:
[1] https://www.morningstar.com/news/business-wire/20250815266397/deadline-soon-reddit-inc-rddt-investors-who-lost-money-urged-to-contact-the-law-offices-of-frank-r-cruz-about-securities-fraud-lawsuit
[2] https://www.marketscreener.com/news/pomerantz-law-firm-reminds-investors-with-losses-on-their-investment-in-reddit-inc-of-class-action-ce7c51dfda8af12d
[3] https://www.businesswire.com/news/home/20250816848397/en/RDDT-Deadline-Rosen-Law-Firm-Urges-Reddit-Inc.-NYSE-RDDT-Stockholders-with-Losses-in-Excess-of-%24100K-to-Contact-the-Firm-for-Information-About-Their-Rights