1. Class action lawsuit filed against Reddit, Inc. over alleged securities fraud. 2. Defendants accused of misleading investors about traffic declines due to Google changes. 3. Investors can seek compensation without upfront costs by participating in the lawsuit. 4. Lawsuit could impact Reddit's credibility and investor confidence moving forward.
The lawsuit raises concerns over management transparency, potentially damaging investor sentiment—similar to past cases affecting tech companies like Facebook.
The allegations directly target corporate governance which is critical for RDDT's valuation and growth prospects.
Immediate effects on market perception could result in volatile stock behavior due to investor uncertainty surrounding the lawsuit.
The lawsuit seeks to recover losses on behalf of Reddit, Inc. investors who were adversely affected by alleged securities fraud between October 29, 2024 and May 20, 2025. Follow the link below to get more information and be contacted by a member of our team:
https://zlk.com/pslra-1/reddit-inc-lawsuit-submission-form?prid=156574&wire=4
RDDT investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
The filed complaint alleges that defendants made false statements and/or concealed that:
(i) changes in Google Search's algorithm and features like AI Overview were causing users to stop their query on Google Search;
(ii) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website;
(iii) defendants were aware that the increase in the query term "Reddit" on search engines was because users were getting the sought after answer from Google Search without having to go to Reddit, and not because they intended to visit Reddit;
(iv) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term;
(v) defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and
(vi) as a result, the Company's public statements were materially false and misleading at all relevant times.
If you suffered a loss in Reddit, Inc. during the relevant time frame, you have until August 18, 2025 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
If you are a class member, you may be entitled to compensation without payment of any out-of-pocket costs or fees. There is no cost or obligation to participate.
Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
SOURCE Levi & Korsinsky, LLP