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 failure to disclose material information that negatively impacted the company's stock performance [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from October 29, 2024, to May 20, 2025 [3]. - Allegations include that Reddit's management made materially false and misleading statements regarding user engagement and advertising revenues, particularly in relation to changes in Google Search's algorithm [3]. Specific Allegations - Changes in Google Search's algorithm and features, such as AI Overview, led to a decline in user queries on Google Search, which in turn affected traffic to Reddit [3]. - The increase in search queries for "Reddit" was due to users finding answers directly on Google, not because they intended to visit Reddit [3]. - The zero-click search phenomenon significantly reduced traffic to Reddit, which the company could not counteract in the short term [3]. - Management lacked a reasonable basis for their outlook on user rates and advertising revenues, rendering their public statements misleading [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by August 18, 2025, to participate in potential recovery [4]. - Registration includes enrollment in a portfolio monitoring system for updates on the case [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices [5].
Lost Money on Reddit, Inc. (RDDT)? Join Class Action Suit Seeking Recovery – Contact The Gross Law Firm