Reddit Sued for Securities Fraud by Bleichmar Fonti & Auld LLP.

Leading securities law firm Bleichmar Fonti & Auld LLP has filed a lawsuit against Reddit and its senior executives for potential federal securities law violations. Investors who purchased Reddit securities are encouraged to obtain additional information by visiting the firm's website. The case is pending in the U.S. District Court for the Northern District of California.

NEW YORK, July 14, 2025 — Leading securities law firm Bleichmar Fonti & Auld LLP has announced the filing of a lawsuit against Reddit, Inc. (NYSE: RDDT) and certain of its senior executives. The lawsuit alleges potential violations of the federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1].

Investors who purchased Reddit securities are encouraged to obtain additional information by visiting the firm's website [1]. The case is pending in the U.S. District Court for the Northern District of California and is captioned Tamraz, Jr. v. Reddit, Inc., et al., No. 25-cv-05144.

Why Was Reddit Sued for Securities Fraud?

Reddit owns and operates a social news aggregation, forum, and social media platform. The complaint alleges that Reddit misrepresented and downplayed the impact that Google’s use of Artificial Intelligence (AI) technology in Google's search results had on Reddit’s user growth. In truth, Google’s AI capabilities have significantly reduced the need for individuals to visit Reddit to get answers to their questions, as the answers appear directly through Google’s AI search results [1, 2, 3].

The Stock Declines as the Truth is Revealed

On May 1, 2025, Reddit reported a significant slowdown in daily active user growth. Following this news, the price of Reddit stock declined by $4.96 per share, or more than 4%, from $118.79 per share on May 1, 2025, to $113.83 per share on May 2, 2025 [1, 2, 3].

Then, on May 21, 2025, Wall Street analyst Baird cut its Reddit stock price target over concerns that Google’s AI capabilities are stifling Reddit’s user growth. This announcement led to a further decline in Reddit stock, falling by $9.79 per share, or over 9%, from $105.64 per share on May 20, 2025, to $95.85 per share on May 21, 2025 [1, 2, 3].

What Can You Do?

Investors who purchased Reddit securities may have legal options. They are encouraged to submit their information to the firm. All representation is on a contingency fee basis, meaning there is no cost to investors. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses [1, 2, 3].

Investors can submit their information by visiting [https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action](https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action) or by contacting Ross Shikowitz at ross@bfalaw.com or by phone at 212-789-3619.

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS. The firm’s attorneys have been recognized as “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters. Among its notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd. [1, 2, 3].

For more information about BFA and its attorneys, please visit [https://www.bfalaw.com](https://www.bfalaw.com).

References:

[1] https://www.globenewswire.com/news-release/2025/07/14/3114757/0/en/RDDT-FRAUD-CLASS-ACTION-Reddit-Inc-Investors-may-have-been-Affected-by-Fraud-Contact-BFA-Law-by-August-18-Legal-Deadline-NYSE-RDDT.html
[2] https://www.morningstar.com/news/globe-newswire/9492758/rddt-fraud-alert-reddit-inc-9-stock-drop-triggers-securities-fraud-class-action-investors-notified-to-contact-bfa-law-by-august-18-nyserddt
[3] https://www.tradingview.com/news/reuters.com,2025-07-12:newsml_GNX3BlRzy:0-rddt-fraud-alert-reddit-inc-9-stock-drop-triggers-securities-fraud-class-action-investors-notified-to-contact-bfa-law-by-august-18-nyse-rddt/