Core Viewpoint - A lawsuit has been filed against Reddit, Inc. and its senior executives for potential violations of federal securities laws, specifically related to misrepresentations about user growth impacted by Google's AI technology [1][2][3]. Company Overview - Reddit operates a social news aggregation and forum platform, receiving significant user traffic from Google searches [3]. - The lawsuit claims that Reddit downplayed the negative effects of Google's AI on its user growth [3][4]. Legal Proceedings - The lawsuit is pending in the U.S. District Court for the Northern District of California, titled Tamraz, Jr. v. Reddit, Inc., et al., No. 25-cv-05144 [2]. - Investors have until August 18, 2025, to request to lead the case [2]. Stock Performance - On May 1, 2025, Reddit reported a slowdown in daily active user growth, leading to a stock price decline of $4.96, or over 4%, from $118.79 to $113.83 per share [5]. - Following an analyst downgrade on May 21, 2025, due to concerns over Google's AI, Reddit's stock fell by $9.79, or over 9%, from $105.64 to $95.85 per share [6].
RDDT SHAREHOLDERS: The Reddit, Inc. August 18 Class Action Deadline is Approaching -- Contact BFA Law if You Suffered Losses (NYSE:RDDT)