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Class action lawsuits

Class Action Lawsuit Filed Against Reddit, Inc. for Violations of Federal Securities Laws

Strategic Insights

— 1 min read

DJS Law Group announced a class action lawsuit against Reddit, Inc. for alleged violations of federal securities laws, specifically regarding false and misleading statements about the impact of Google's search algorithm changes on the Company's traffic. The lawsuit focuses on the period between October 29, 2024, and May 20, 2025, and encourages shareholders who purchased Reddit's securities during this time to contact the firm before August 18, 2025.

Key Takeaways:

  • The lawsuit alleges that Reddit made false and misleading statements about the impact of Google's search algorithm changes on the Company's traffic.
  • The Company was aware that Google users added "Reddit" to their search to get answers to questions without visiting the platform, but failed to address the challenges caused by Google.
  • The Class Period spans from October 29, 2024, to May 20, 2025, and includes all shareholders who purchased Reddit's securities during this time.
  • DJS Law Group is specializing in securities class actions, corporate governance litigation, and domestic/international M&A appraisals for the benefit of investors.
  • The Company's focus is on enhancing investor return through balanced counseling and aggressive advocacy for the benefit of clients, which include large and sophisticated hedge funds and alternative asset managers.
  • The lawsuit may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
  • Shareholders who suffered a loss are encouraged to contact DJS Law Group to participate in the lawsuit.

Statistics:

  • The Class Period spans approximately 7 months, from October 29, 2024, to May 20, 2025.
  • The lawsuit covers all shareholders who purchased Reddit's securities during this time.
  • The law firm, DJS Law Group, has offices located at 274 White Plains Road, Suite 1, in Eastchester, NY 10709.
  • David J. Schwartz serves as the contact person for the lawsuit, with a phone number of 914-206-9742.

Sources:

  • DJS Law Group LLP
  • PRNewswire, July 9, 2025
  • NYSE: RDDT

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