Pomerantz LLP Announces Class Action Lawsuit Against Reddit, Inc.

Strategic Insights -

Pomerantz LLP has announced a class action lawsuit against Reddit, Inc. (NYSE: RDDT) on behalf of investors who purchased or otherwise acquired Reddit securities during the Class Period. The lawsuit concerns whether Reddit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. Investors have until August 18, 2025, to ask the Court to appoint them as Lead Plaintiff for the class.

Key Takeaways:

  • The class action lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) on behalf of investors who purchased or otherwise acquired Reddit securities during the Class Period.
  • The lawsuit concerns whether Reddit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
  • On May 1, 2025, Reddit reported its financial results for the first quarter of 2025, which included a decline in daily active user growth for the third consecutive quarter.
  • On May 2, 2025, Reddit's stock price fell $4.96 per share, or 4.18%, to close at $113.83 per share following the release of its financial results.
  • On May 19, 2025, Wells Fargo analysts downgraded Reddit's stock and lowered their price target, citing concerns about the impact of Google Search's expanded AI capabilities on Reddit's user growth.
  • On May 21, 2025, Baird analysts also downgraded Reddit's stock and lowered their price target, citing similar concerns about the impact of Google Search's expanded AI capabilities on Reddit's user growth.
  • Pomerantz LLP is a premier firm in the areas of corporate, securities, and antitrust class litigation, with a history of recovering multimillion-dollar damages awards on behalf of class members.

Statistics:

  • May 2, 2025: Twitter (via Pomerantz LLP's announcement) share price fell $4.96 per share, or 4.18%, to close at $113.83 per share.
  • May 10, 2025: Reddit's stock price fell $5.24 per share, or 4.63%, to close at $107.99 per share.
  • May 21, 2025: Twitter (via Pomerantz LLP's announcement) share price fell $9.79 per share, or 9.27%, to close at $95.85 per share.

Sources:

  • Pomerantz LLP - New York, Chicago, Los Angeles, London, Paris, and Tel Aviv
  • Reddit, Inc. - NYSE: RDDT
  • Pomerantz LLP's Class Action Complaint - (available at [.]