The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Reddit, Inc.(RDDT) Shareholders

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit alleging that the company made materially false and misleading statements during a specified class period, which negatively impacted its stock value [1][2]. Group 1: Allegations Against Reddit, Inc. - The complaint alleges that changes in Google Search's algorithm, including features like AI Overview, led to a decline in user queries on Google Search, which in turn affected traffic to Reddit [1]. - It is claimed that these algorithm changes were significantly different from previous instances of reduced traffic to Reddit's website [1]. - The defendants allegedly knew that the increase in the search term "Reddit" was due to users finding answers directly on Google Search, rather than intending to visit Reddit [1]. - The phenomenon of zero-click searches is said to have dramatically reduced traffic to Reddit, which the company could not overcome in the short term [1]. - As a result, the defendants are accused of lacking a reasonable basis for their outlook on user rates and advertising revenues, leading to materially false and misleading public statements [1]. Group 2: Class Action Details - The class period for the lawsuit is defined as October 29, 2024, to May 20, 2025, with a deadline for shareholders to register as lead plaintiffs set for August 18, 2025 [2]. - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates on the case's status [2]. - Participation in the case incurs no cost or obligation for the shareholders [2]. Group 3: About The Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit, fraud, and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions by companies [3].