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The Gross Law Firm Notifies Shareholders of Reddit, Inc.(RDDT) of a Class Action Lawsuit and an Upcoming Deadline

1. Reddit faces class action for misleading statements impacting user traffic. 2. Changes in Google's algorithm reportedly reduced Reddit's site traffic significantly. 3. Shareholders can register to be lead plaintiffs in the class action case. 4. Concerning allegations may hinder Reddit's advertising revenue outlook. 5. Deadline for registering is August 18, 2025.

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FAQ

Why Bearish?

The allegations suggest a severe decrease in traffic, which can lead to declining revenues. Historical patterns indicate that companies facing lawsuits and credibility issues often see stock price declines.

How important is it?

The class action highlights critical issues regarding user engagement and revenue forecast, which can adversely affect investor sentiment and RDDT's stock price.

Why Long Term?

Ongoing legal issues can impact stock performance for extended periods, as seen in previous cases like Facebook's legal troubles affecting stock valuation over years.

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, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Reddit, Inc. (NYSE: RDDT). Shareholders who purchased shares of RDDT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/reddit-inc-loss-submission-form/?id=158124&from=4 CLASS PERIOD: October 29, 2024 to May 20, 2025 ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose 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. DEADLINE: August 18, 2025 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/reddit-inc-loss-submission-form/?id=158124&from=4 NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of RDDT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 18, 2025. There is no cost or obligation to you to participate in this case. WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:The Gross Law Firm15 West 38th Street, 12th floorNew York, NY, 10018Email: [email protected]Phone: (646) 453-8903 SOURCE Gross Law Firm WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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