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Class action lawsuits

Reddit Class Action Lawsuit Filed Over Misleading Statements

Strategic Insights

— 1 min read

Rosen Law Firm, a global investor rights law firm, has filed a class action lawsuit against Reddit, Inc. (NYSE: RDDT) on behalf of its shareholders who purchased securities between October 29, 2024, and May 20, 2025. The lawsuit claims that defendants made false and misleading statements about the impact of Google Search's algorithm changes on Reddit's traffic and advertising revenues.

Key Takeaways:

  • The lawsuit alleges that defendants made false statements about the impact of Google Search's algorithm changes on Reddit's traffic and advertising revenues.
  • The 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.
  • Defendants were aware of the true impact of the algorithm changes but failed to disclose it to investors.
  • The lawsuit claims that investors suffered damages when the true details entered the market.
  • A lead plaintiff is required to move the Court no later than August 18, 2025, to serve as a representative party for other class members.
  • The Rosen Law Firm represents investors throughout the globe and has a track record of success in securities class actions and shareholder derivative litigation.

Statistics:

  • The lawsuit covers shares purchased between October 29, 2024, and May 20, 2025, inclusive.
  • The lead plaintiff deadline is August 18, 2025.
  • The Rosen Law Firm has a track record of securing hundreds of millions of dollars for investors in securities class actions.
  • In 2019, the firm secured over $438 million for investors.
  • In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar.

Sources:

  • Newsfile Corp. - July 21, 2025
  • LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm
  • Twitter: https://twitter.com/rosen_firm
  • Facebook: https://www.facebook.com/rosenlawfirm/
  • https://rosenlegal.com/submit-form/?case_id=40507
  • Phone: (212) 686-1060 or Toll Free: (866) 767-3653
  • Fax: (212) 202-3827
  • Email: case@rosenlegal.com
  • Website: https://www.rosenlegal.com

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