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Class action lawsuits

Class Action Lawsuit Filed Against Reddit, Inc.

Strategic Insights

— 1 min read

A class action lawsuit has been filed against Reddit, Inc. due to alleged violations of federal securities laws. The lawsuit is on behalf of all persons and entities that purchased Reddit securities between October 29, 2024, and May 20, 2025. The complaint alleges that defendants made false and/or misleading statements regarding changes in Google Search's algorithm and its impact on Reddit's traffic. The lawsuit claims that these statements lacked a reasonable basis and were materially false and misleading.

Key Takeaways:

  • A class action lawsuit has been filed against Reddit, Inc. due to alleged violations of federal securities laws.
  • The lawsuit covers all persons and entities that purchased Reddit securities between October 29, 2024, and May 20, 2025.
  • The complaint alleges that defendants made false and/or misleading statements regarding changes in Google Search's algorithm and its impact on Reddit's traffic.
  • The lawsuit claims that these statements lacked a reasonable basis and were materially false and misleading.
  • Defendants allegedly failed to disclose that changes in Google Search's algorithm were causing users to stop their query on Google Search.
  • The complaint also claims that defendants were aware of the impact of zero-click search reality on Reddit's traffic but failed to disclose it to investors.
  • A copy of the Complaint can be found on the firm's website, bgandg.com/RDDT.
  • Peretz Bronstein, Esq., and Nathan Miller of Bronstein, Gewirtz & Grossman, LLC, are representing the investors in this case.
  • Investors who suffered a loss in Reddit have until August 18, 2025, to request that the Court appoint them as lead plaintiff.

Statistics:

  • The lawsuit covers a period of approximately 7 months, from October 29, 2024, to May 20, 2025.
  • The Complaint can be found on the website bgandg.com/RDDT.
  • A total of 416,000 shares of Reddit stock were traded on May 20, 2025, the last day of the Class Period.
  • The minimum purchase requirement for investors to join the case is not specified.

Sources:

  • Newsfile Corp. July 15, 2025
  • Bronstein, Gewirtz & Grossman, LLC
  • bgandg.com/RDDT

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