In a dramatic turn of events, Reddit, Inc. finds itself embroiled in a class action lawsuit, as shareholders rally against the company over alleged securities fraud. The lawsuit, filed against the social media giant, aims to recover losses for investors who suffered due to misleading information about the impact of Google’s AI on Reddit’s site traffic. The period in question spans from October 29, 2024, to May 20, 2025.
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The core of the complaint revolves around accusations that Reddit misled its investors by concealing the true impact of changes in Google’s search algorithm. These changes, particularly the introduction of AI Overview, reportedly caused users to find answers directly on Google, bypassing Reddit altogether. This shift, known as the “zero-click search” phenomenon, significantly reduced traffic to Reddit, contrary to the company’s optimistic outlook on user engagement and advertising revenue.
Investors claim that Reddit’s leadership was aware of these developments but failed to disclose them, resulting in materially false and misleading public statements. As a result, shareholders who relied on these statements suffered financial losses.
For those who have experienced a loss in Reddit stock during this time frame, there is an opportunity to seek recovery. Affected investors are encouraged to visit [this link](https://zlk.com/pslra-1/reddit-inc-lawsuit-submission-form?wire=18) to learn more about their rights. Participation in this legal action comes with no cost or obligation.
Leading the charge in this legal battle is Levi & Korsinsky LLP, a firm with a formidable reputation in securities litigation. With over 20 years of experience and a track record of securing substantial settlements for shareholders, the firm is well-equipped to handle this high-stakes case.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171