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Reddit, Inc. Faces Securities Fraud Lawsuit Over Misleading Statements
ByAinvest
Sunday, Aug 10, 2025 11:11 pm ET1min read
Reddit, Inc. is facing a class-action lawsuit for violating securities laws. The lawsuit claims that the company made false and misleading statements about its traffic being negatively impacted by changes to Google's search algorithm and features like AI Overview. Investors who purchased the company's securities between October 29, 2024 and May 20, 2025 are encouraged to contact the Schall Law Firm before August 18, 2025.
Reddit, Inc. (NYSE: RDDT) is the subject of a class action lawsuit alleging violations of federal securities laws. The DJS Law Group and the Schall Law Firm have filed a lawsuit, claiming that Reddit made false and misleading statements regarding the impact of Google's search algorithm changes on its traffic [1].The complaint alleges that Reddit misled investors about the extent to which Google's search algorithm and features like AI Overview were affecting its traffic. Reddit was aware that many Google users added "Reddit" to their searches to find answers without visiting the platform but failed to address these challenges effectively. This misrepresentation has been deemed materially different from the actual impact experienced by prior Google changes [2].
Investors who purchased Reddit's securities between October 29, 2024, and May 20, 2025, are encouraged to contact the firms before August 18, 2025, to discuss their rights and potential participation in the class action [1]. The lawsuit has not yet been certified, and until certification occurs, investors are not represented by an attorney.
The Rosen Law Firm 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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