Prominent Securities Fraud Law Firm encourages Reddit, Inc …

Glancy Prongay & Murray LLP, a well-respected legal firm specializing in shareholder rights, has brought to light a significant development regarding Reddit, Inc. (NYSE: RDDT). A class action lawsuit has been initiated on behalf of investors who bought or traded Reddit securities between October 29, 2024, and May 20, 2025, marking a notable period in the company’s financial history. Investors who were impacted by these events have until August 18, 2025, to take action by filing a lead plaintiff motion.

The series of events that led to this legal action began with Reddit’s release of its first quarter 2025 financial results on May 1, 2025. These results revealed a concerning trend of declining daily active user growth for the third consecutive quarter. Consequently, Reddit’s stock price took a hit, plummeting by $4.96, representing a 4.2% decrease.

The situation further deteriorated on May 19, 2025, when Wells Fargo analysts downgraded Reddit’s stock. They indicated that Google’s AI advancements could have long-lasting negative effects on user traffic to Reddit, leading to a decrease in advertising revenue. This caused Reddit’s stock price to dip by $5.24, or 4.6%. Subsequently, on May 21, 2025, Baird analysts echoed similar concerns, resulting in a substantial drop in Reddit’s stock price by $9.79, or 9.3%.

The core allegations in the class action complaint revolve around claims that during the Class Period, Reddit’s leadership failed to disclose vital information about the company’s performance and potential risks. Key points highlighted in the complaint include the impact of Google Search algorithm changes and AI features, leading to a decline in Reddit website traffic. Additionally, the complaint asserts that Reddit’s management was aware of the shift in users seeking answers directly from Google Search, thereby bypassing Reddit’s platform, which contributed to a significant reduction in traffic and potential revenue.

Investors who were affected by these developments and held Reddit securities during the specified Class Period are urged to take action by contacting the court before August 18, 2025, to explore the possibility of securing a lead plaintiff position in the class action lawsuit.

For further information or inquiries regarding participation in this legal process, individuals are encouraged to reach out to Glancy Prongay & Murray LLP. Contact information is readily available for those wishing to engage with the firm and gain more insight into the matter.