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]. Group 1: Lawsuit Details - The class action lawsuit covers individuals who purchased Reddit securities between October 29, 2024, and May 20, 2025, with a deadline of August 18, 2025, for investors to apply as lead plaintiffs [1]. - The lawsuit claims that Reddit's management failed to disclose the impact of Google Search's algorithm changes on user traffic, which led to a significant decline in daily active user growth [3][4]. Group 2: Financial Impact - Following the earnings release on May 1, 2025, Reddit's stock price fell by $4.96, or 4.2%, from $118.79 to $113.83 per share due to three consecutive quarters of deceleration in user growth [4]. - On May 19, 2025, Wells Fargo downgraded Reddit's stock, reducing the price target from $168 to $115 per share, which resulted in a further decline of $5.24, or 4.6%, in stock price [5]. - Baird analysts also downgraded Reddit's stock on May 21, 2025, lowering the price target from $140 to $120 per share, leading to a drop of $9.79, or 9.3%, in stock price [6][7].
REDDIT FINAL DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Reddit Investors of the August 18th Deadline for the Class Action Suit