Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. for alleged misleading statements regarding user traffic and advertising revenue, particularly in relation to changes in Google Search's algorithm and AI features [1][3][5]. Group 1: Lawsuit Details - The lawsuit covers individuals who purchased Reddit securities between October 29, 2024, and May 20, 2025, with a deadline of August 18, 2025, to apply as lead plaintiff [1]. - The complaint alleges that Reddit's user traffic was significantly impacted by changes in Google Search, which began implementing new AI capabilities that altered search results [2][3]. Group 2: Financial Impact - Reddit reported three consecutive quarters of deceleration in daily active user growth in its earnings release on May 1, 2025, leading to a stock price drop of $4.96, or 4.2%, from $118.79 to $113.83 per share [4]. - Following a downgrade by Wells Fargo on May 19, 2025, Reddit's stock fell by $5.24, or 4.6%, from $113.23 to $107.99 per share, with analysts citing permanent disruptions from Google Search's new AI features [5]. - On May 21, 2025, Baird analysts downgraded Reddit's stock again, reducing the price target to $120 from $140, resulting in a further decline of $9.79, or 9.3%, from $105.64 to $95.85 per share [6][7].
REDDIT URGENT DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Reddit Investors of the August 18th Deadline for the Class Action Suit