Core Viewpoint - Investors in Reddit, Inc. (NYSE: RDDT) have the opportunity to lead a securities fraud class action lawsuit due to undisclosed material information affecting the company's performance [1][2]. Summary by Relevant Sections Lawsuit Details - The lawsuit alleges that from October 29, 2024, to May 20, 2025, Reddit's management failed to disclose significant changes in Google Search's algorithm that negatively impacted user traffic to Reddit [2]. - Key allegations include that the changes in Google's algorithm led to a decrease in users' queries on Reddit, which was materially different from previous traffic reductions [2]. - It is claimed that the increase in searches for "Reddit" was due to users finding answers directly on Google, rather than intending to visit Reddit, leading to a dramatic reduction in traffic that the company could not mitigate in the short term [2]. - The lawsuit asserts that the defendants lacked a reasonable basis for their forecasts regarding user rates and advertising revenues, making their positive statements about the company's business misleading [2]. Participation Information - Investors who suffered losses related to Reddit are encouraged to participate in the class action lawsuit before the lead plaintiff deadline of August 18, 2025 [2]. - Interested parties can contact the Law Offices of Frank R. Cruz for more information or to participate in the lawsuit [3][4].
Reddit, Inc. (RDDT) Investors Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit