1. Reddit, Inc. faces a class action securities lawsuit over alleged fraud. 2. Lawsuit claims false statements affected user rates and advertising revenues. 3. The lawsuit timeline spans October 2024 to May 2025. 4. Investors have until August 18, 2025, to act as lead plaintiffs. 5. No cost involved for class members to participate in the lawsuit.
The lawsuit suggests significant financial mismanagement, manifesting in user rate forecasts. Historical parallels can be drawn with firms like Snap Inc. experiencing stock declines after similar lawsuits.
The allegations of securities fraud threaten Reddit's credibility and investor confidence. Given RDDT’s reliance on user engagement and advertising revenue, the lawsuit could severely impact future performance.
Ongoing litigation can affect investor sentiment and stock performance long-term. Other cases have shown persistent negative sentiment even after resolutions are reached.
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=155745&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