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Reddit Class Action Lawsuit Filed Over Misleading Statements on Traffic Impact.
ByAinvest
Thursday, Jul 31, 2025 10:48 am ET1min read
A class action lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) for alleged violations of federal securities laws. The lawsuit claims that the company made false and misleading statements regarding the impact of Google's search algorithm changes on its traffic. Shareholders who purchased securities between October 29, 2024 and May 20, 2025 are encouraged to contact the firm before August 18, 2025.
A class action lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) for alleged violations of federal securities laws. The lawsuit claims that the company made false and misleading statements regarding the impact of Google's search algorithm changes on its traffic. Shareholders who purchased securities between October 29, 2024 and May 20, 2025 are encouraged to contact the firm before August 18, 2025 [1].The complaint alleges that Reddit made false and misleading statements to the market about the extent to which Google's search algorithm and features like AI Overview were impacting its traffic. The company's statements were found to be materially different from the actual impact experienced by prior Google changes. Reddit was aware that Google users often added "Reddit" to their searches to find answers without visiting the platform, but failed to address these challenges effectively in the short term [2].
Shareholders who suffered losses as a result of these misleading statements are urged to contact the law firms involved in the case. The DJS Law Group and the Schall Law Firm are both handling the lawsuit and have provided contact information for investors to discuss their rights and potential participation in the class action [1][2].
The Schall Law Firm, a national shareholder rights litigation firm, has emphasized the importance of contacting the firm before the August 18, 2025 deadline to discuss participation in the lawsuit. The class action has not yet been certified, and until certification occurs, investors are not represented by an attorney [2].
Investors are advised to carefully consider their options and seek legal counsel if they believe they have suffered losses due to the alleged violations. The Rosen Law Firm, known for its expertise in securities class actions and shareholder derivative litigation, has also issued a notice about a similar class action involving Fortrea Holdings, Inc. (NASDAQ: FTRE) [3].
References:
[1] https://www.marketscreener.com/news/rddt-shareholders-have-the-right-to-lead-the-reddit-inc-securities-lawsuit-contact-the-djs-law-g-ce7c5fdddc80f423
[2] https://www.prnewswire.com/news-releases/rddt-investors-have-opportunity-to-lead-reddit-inc-securities-fraud-lawsuit-with-the-schall-law-firm-302518331.html
[3] https://www.morningstar.com/news/pr-newswire/20250730dc41134/ftre-deadline-ftre-investors-with-losses-in-excess-of-100k-have-opportunity-to-lead-fortrea-holdings-inc-securities-fraud-lawsuit
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