Core Viewpoint - A lawsuit has been filed against Reddit, Inc. and its senior executives for potential violations of federal securities laws, specifically related to misrepresentation of user growth impacted by Google's AI technology [1][2][3]. Company Overview - Reddit operates a social news aggregation and forum platform, which has seen a decline in user growth due to Google's AI search results reducing the need for users to visit Reddit for answers [3][4]. Legal Proceedings - The lawsuit is pending in the U.S. District Court for the Northern District of California, with investors having until August 18, 2025, to seek lead plaintiff status [2]. - The complaint cites violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [2]. Stock Performance - On May 1, 2025, Reddit reported a slowdown in daily active user growth, leading to a stock price decline of $4.96, or over 4%, from $118.79 to $113.83 per share [5]. - Following an analyst downgrade on May 21, 2025, due to concerns over Google's AI impact, Reddit's stock fell by $9.79, or over 9%, from $105.64 to $95.85 per share [6].
RDDT INVESTORS: Reddit, Inc. (NYSE:RDDT) Investors may have been Affected by Fraud – Contact BFA Law by August 18 about Potentially Recovering Losses