1. Investors can lead a class action lawsuit against Reddit. 2. Lawsuit claims misleading statements about user traffic and revenues. 3. Defendants allegedly ignored critical changes in Google Search algorithms. 4. Reddit's traffic decline was not communicated to investors adequately. 5. Investors must act before August 18, 2025, to join the lawsuit.
The lawsuit indicates serious allegations of fraud which can deter investors and negatively influence stock prices, as seen in similar cases with companies like Theranos and Enron, which experienced drastic drops following fraud-related lawsuits.
The allegations in the lawsuit could significantly impact Reddit's trust and stock performance, given the potential repercussions of investor law actions in the tech sector.
The market reaction to lawsuits is usually immediate, affecting investor confidence and leading to short-term price drops. Historical cases have shown declines in stock prices upon lawsuit announcements.
LOS ANGELES, Aug. 13, 2025 /PRNewswire/ -- Glancy Prongay & Murray LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Reddit, Inc. ("Reddit" or the "Company") (NYSE: RDDT).
IF YOU SUFFERED A LOSS ON YOUR REDDIT INVESTMENTS, CLICK HERE BEFORE AUGUST 18, 2025 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between October 29, 2024 and May 20, 2025, Defendants failed to disclose to investors that: (1) changes in Google Search's algorithm and features like AI Overview were causing users to stop their query on Google Search; (2) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website; (3) 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; (4) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term; (5) Defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
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SOURCE Glancy Prongay & Murray LLP