#United States #New York #Levi & Korsinsky #Inc. #Securities Fraud #Reddit

Legal Action Announcement: Reddit, Inc. Shareholders

On July 22, 2025, Levi & Korsinsky, LLP announced the initiation of a class action lawsuit on behalf of shareholders of Reddit, Inc. (NYSE: RDDT). This lawsuit comes in the wake of serious allegations surrounding securities fraud that reportedly harmed investors during a specified period from October 29, 2024, through May 20, 2025.

Background of the Lawsuit

The lawsuit was filed with a clear intent to recover losses suffered by Reddit, Inc. investors due to allegedly misleading statements and actions taken by the company. According to the filed complaint, the defendants are accused of concealing critical information that influenced investor decisions and ultimately led to significant financial harm for many shareholders.

Allegations Detailed

The core allegations against the defendants include several key points:
1. Misleading Statements about Google Search Algorithms: The lawsuit claims that the defendants made false statements regarding the impacts of changes in Google Search's algorithms and features, which were leading users to stop their query processes on Google Search.
2. Traffic Reduction: It is alleged that these algorithm changes had a different effect than previous instances, drastically reducing traffic to the Reddit website while making it appear as though increased query occurrences for ‘Reddit’ were due to user intentions rather than Google Search providing the desired content directly.
3. Lack of Reasonable Outlook: The defendants purportedly lacked a reasonable basis for their projections on user engagement rates and advertising-derived revenues. Consequently, the public statements made were misrepresentative and misleading, affecting investors’ decision-making processes.

Next Steps for Affected Shareholders

Investors who suffered losses during the relevant timeframe are encouraged to take action promptly. They have until August 18, 2025, to seek the court’s appointment as lead plaintiff. Noteworthy is that involvement in the lawsuit does not necessitate serving as the lead plaintiff to qualify for potential financial recovery.

No Financial Burden for Claimants

Additionally, one of the significant aspects of this lawsuit is that, for class members, there should be no out-of-pocket costs required to participate. This implies that investors can potentially receive compensation without incurring financial hardships in the process.

Levi & Korsinsky’s Track Record

With over two decades of experience, Levi & Korsinsky, LLP has built a solid reputation in securing significant recoveries for harmed shareholders. With a seasoned team working diligently on complex securities litigation, the firm has established itself as a leader in the field. Their consistent ranking in ISS Securities Class Action Services' Top 50 Report underscores their effectiveness in handling high-stakes securities cases.

Contact Information for Interested Parties

For investors looking for more details or wishing to participate in the class action suit, contacting Joseph E. Levi, Esq. at Levi & Korsinsky is encouraged. He can be reached via email at [email protected] or directly at (212) 363-7500.

Location: 33 Whitehall Street, 17th Floor, New York, NY 10004

Conclusion

As the lawsuit proceeds, it underscores the broader implications of transparency and honesty within corporate communications and investor relations. Reddit, Inc. shareholders who feel impacted by these events are urged to consider their legal options quickly to ensure they do not miss the opportunity for recovery.

For Further Actions: Affected investors should keep an eye on the proceedings and reach out to legal experts to explore their rights and options in this unfolding case.