Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions related to user traffic and advertising revenues during a specified class period [1][2]. Allegations - The complaint alleges that during the class period from October 29, 2024, to May 20, 2025, Reddit's management made materially false and misleading statements regarding user engagement and advertising revenue [1]. - Specific allegations include that changes in Google Search's algorithm, including features like AI Overview, led to a significant drop in user queries directed to Reddit [1]. - 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, which contributed to a decline in traffic [1]. - The lawsuit asserts that the company was unable to overcome this decline in traffic in the short term and lacked a reasonable basis for its outlook on user rates and advertising revenues [1]. Next Steps for Shareholders - Shareholders who purchased shares of RDDT during the class period are encouraged to register for the class action by August 18, 2025, to potentially be appointed as lead plaintiffs [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the lifecycle of the case [2]. About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered losses due to deceit and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that artificially inflated stock prices [3].
The Gross Law Firm Notifies Reddit, Inc. Investors of a Class Action Lawsuit and Upcoming Deadline - RDDT