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Class action lawsuits

Class Action Lawsuit Filed Against Reddit, Inc.

Strategic Insights

— 1 min read

A securities class action lawsuit has been filed against Reddit, Inc., alleging that the company made false and misleading statements about its user rates and advertising revenues during the period between October 29, 2024, and May 20, 2025. The lawsuit claims that changes in Google Search's algorithm and features like AI Overview caused users to stop their query on Google search, reducing traffic to the Reddit website. Investors who purchased Reddit securities during this period may be entitled to compensation without payment of any out-of-pocket fees or costs through a contingency fee arrangement.

Key Takeaways:

  • A class action lawsuit has been filed against Reddit, Inc. for allegedly making false and misleading statements about its user rates and advertising revenues.
  • The lawsuit claims that changes in Google Search's algorithm and features like AI Overview caused users to stop their query on Google search, reducing traffic to the Reddit website.
  • Investors who purchased Reddit securities during the period between October 29, 2024, and May 20, 2025, may be entitled to compensation.
  • The lawsuit was filed by the Rosen Law Firm, a global investor rights law firm.
  • The firm has achieved the largest ever securities class action settlement against a Chinese Company at the time and has recovered hundreds of millions of dollars for investors.
  • Rosen Law Firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017.
  • Founder Laurence Rosen was named by Law360 as a Titan of Plaintiffs' Bar in 2020.
  • The firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Statistics:

  • Period of the alleged false and misleading statements: October 29, 2024, to May 20, 2025.
  • Number of securities class action settlements achieved by Rosen Law Firm: hundreds of millions of dollars.
  • Rank of ISS Securities Class Action Services in 2017: No. 1.

Sources:

  • "Rosen Law Firm Announces Investigation of Reddit, Inc. in Securities Class Action Lawsuit" (Newsfile Corp. - July 8, 2025).
  • The Rosen Law Firm's website (https://rosenlegal.com/).
  • Law360 (2020).

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