Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. on behalf of investors who purchased its securities during the specified Class Period, alleging misleading statements and failure to disclose critical information regarding user traffic and advertising revenue impacts due to changes in Google Search algorithms [1][3]. Group 1: Lawsuit Details - The lawsuit covers investors who acquired Reddit securities between October 29, 2024, and May 20, 2025 [1]. - Investors wishing to serve as lead plaintiffs must file their motion by August 18, 2025 [1]. - Allegations include that Reddit's management made false statements about user engagement and advertising revenue, failing to disclose the impact of Google Search's algorithm changes [3]. Group 2: Allegations Against Defendants - The lawsuit claims that changes in Google Search's algorithm led to a significant drop in traffic to Reddit, as users were able to find answers directly on Google without visiting Reddit [3]. - It is alleged that the increase in search queries for "Reddit" was misleading, as it did not indicate user intent to visit the site [3]. - The defendants are accused of lacking a reasonable basis for their forecasts regarding user rates and advertising revenues due to these undisclosed issues [3].
Class Action Filed Against Reddit, Inc. – Investors with Losses Encouraged to Contact Johnson Fistel