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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 aims to recover damages for investors who purchased or acquired 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 features, which negatively impacted Reddit's traffic and advertising revenues.

Key Takeaways:

  • The lawsuit claims that defendants failed to disclose that changes in Google Search's algorithm were causing users to stop their query on Google Search, leading to reduced traffic to the Reddit website.
  • The complaint alleges that defendants were aware of the zero-click search reality, which was dramatically reducing traffic to Reddit, and that they lacked a reasonable basis for their outlook on user rates and advertising revenues.
  • The class action lawsuit seeks to recover damages for all persons and entities that purchased or otherwise acquired Reddit securities during the Class Period.
  • Investors who suffered a loss in Reddit have until August 18, 2025, to request that the Court appoint them as lead plaintiff.
  • Bronstein, Gewirtz & Grossman, LLC is representing investors in this class action lawsuit on a contingency fee basis.
  • Peretz Bronstein, Esq., or Nathan Miller, can be contacted at 332-239-2660 for more information.
  • A copy of the Complaint can be reviewed on the firm's website, bgandg.com/RDDT.
  • Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits.

Statistics:

  • The class action lawsuit was filed on July 21, 2025.
  • The Class Period spans from October 29, 2024, to May 20, 2025.
  • Investors who suffered a loss in Reddit can request to be appointed as lead plaintiff by August 18, 2025.
  • Bronstein, Gewirtz & Grossman, LLC has recovered hundreds of millions of dollars for investors nationwide.

Sources:

  • Newsfile Corp. (July 21, 2025) - Class Action Lawsuit Filed against Reddit, Inc.
  • Bronstein, Gewirtz & Grossman, LLC (Website) - bgandg.com/RDDT

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