Pomerantz Announces Class Action Lawsuit Against Reddit for Securities Fraud.

• Bloomberg: Class action filed against Reddit, alleging securities fraud • Lawsuit targets Reddit, officers, and directors for unlawful practices • Lead plaintiff appointment deadline: August 18, 2025 • Complaint available on Pomerantz LLP's website: pomerantzlaw.com • Class action concerns Reddit's financial reporting • First quarter 2025 results reported on May 1, 2025 • Allegations of securities fraud and unlawful business practices • Pomerantz LLP: Contact Danielle Peyton for more information at newaction@pomlaw.com or 646-581-9980

A class action lawsuit has been filed against Reddit, Inc. (NYSE: RDDT), with allegations of securities fraud and unlawful business practices. The lawsuit, filed by Pomerantz LLP, targets Reddit and certain of its officers and directors, and is seeking damages on behalf of investors who purchased Reddit securities during the class period [1].

The class action lawsuit alleges that Reddit and its executives made false and misleading statements, and failed to disclose material information regarding changes in Google Search's algorithm and features like AI Overview. These changes, it is alleged, have caused significant reductions in user traffic to Reddit, impacting the company's user growth and advertising revenues [2].

Reddit reported its first quarter 2025 financial results on May 1, 2025, revealing three consecutive quarters of deceleration in daily active user growth. The announcement led to a significant drop in Reddit's stock price. Analysts from Wells Fargo and Baird further downgraded Reddit's stock, citing concerns about the impact of Google Search's expanded AI capabilities on Reddit's user growth [1].

Investors who purchased or otherwise acquired Reddit securities between October 29, 2024, and May 20, 2025, are encouraged to contact Danielle Peyton at Pomerantz LLP for more information. The deadline to ask the Court to appoint a lead plaintiff in the lawsuit is August 18, 2025. A copy of the complaint can be obtained at www.pomerantzlaw.com [1].

References:
[1] https://www.marketscreener.com/news/pomerantz-law-firm-reminds-investors-with-losses-on-their-investment-in-reddit-inc-of-class-action-ce7c51dfda8af12d
[2] https://www.globenewswire.com/news-release/2025/08/16/3134544/0/en/REDDIT-URGENT-DEADLINE-ALERT-Bragar-Eagel-Squire-P-C-Reminds-Reddit-Investors-of-the-August-18th-Deadline-for-the-Class-Action-Suit.html