Class Action Lawsuit Filed Against Reddit, Inc.

Strategic Insights -

Reddit's stock price plummeted after investors were misled about the site's traffic and user engagement. The lawsuit claims that between October 29, 2024, and May 20, 2025, Reddit's leadership made false statements to investors about the impact of changes to Google Search's algorithm on the site's traffic. As a result, investors who purchased Reddit securities during this period may be entitled to compensation without paying out-of-pocket fees or costs.

Key Takeaways:

  • A class action lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) for allegedly misleading investors about the site's traffic and user engagement.
  • The lawsuit claims that Reddit's leadership made false statements to investors about the impact of changes to Google Search's algorithm on the site's traffic.
  • Investors who purchased Reddit securities between October 29, 2024, and May 20, 2025, may be entitled to compensation without paying out-of-pocket fees or costs.
  • The lawsuit also notes that Reddit's leadership was aware of the algorithm changes but failed to disclose their impact on the site's traffic.
  • The Rosen Law Firm, representing investors throughout the globe, will direct the litigation and encourage investors to select qualified counsel with experience in leadership roles.
  • The firm has a track record of success in securities class actions and shareholder derivative litigation, with notable achievements including the largest-ever securities class action settlement against a Chinese company and recovering hundreds of millions of dollars for investors.

Statistics:

  • The lawsuit covers a period of approximately 7 months, from October 29, 2024, to May 20, 2025.
  • The date for lead plaintiff designation is August 18, 2025.
  • The Rosen Law Firm has recovered over $438 million for investors in 2019 and achieved the largest ever securities class action settlement against a Chinese company at the time.
  • The firm has been ranked in the top 4 each year since 2013 and has a significant track record of success in securities class actions.

Sources:

  • Newsfile Corp. - August 17, 2025
  • https://www.linkedin.com/company/the-rosen-law-firm
  • https://twitter.com/rosen_firm
  • https://www.facebook.com/rosenlawfirm
  • The Rosen Law Firm, P.A. (email: case@rosenlegal.com, telephone: 866-767-3653)
  • Laurence Rosen, Esq., Phillip Kim, Esq.