Legal Action Initiated Against Reddit: Investors Urged to Join Class Suit

Bragar Eagel & Squire, P.C., a prominent law firm specializing in shareholder rights, has announced the filing of a class action lawsuit against Reddit, Inc. (NYSE: RDDT) in the U.S. District Court for the Northern District of California. The suit targets all investors who purchased or acquired Reddit securities from October 29, 2024, to May 20, 2025. The firm encourages interested parties to contact them before the August 18, 2025 deadline to participate as lead plaintiffs. The complaint alleges that Reddit's revenue heavily depends on advertising and that a significant portion of its web traffic originates from Google Search. During the class period, Google introduced AI features like AI Overview, which allegedly impacted Reddit's user engagement. The defendants are accused of making false and misleading statements by not disclosing that changes in Google's search algorithms and new AI tools were causing users to abandon query sessions on Google, thereby reducing traffic to Reddit. Specifically, the lawsuit claims that Reddit knew search algorithm updates and AI features were causing a 'zero-click' search environment, decreasing Reddit's visibility and revenue potential. Despit...