Reddit, Inc. Investors with Losses Can Lead Securities Fraud Class Action Lawsuit

Reddit, Inc. Investors Seek Justice in Securities Fraud Case

Introduction

Reddit, Inc. (NYSE: RDDT) is facing legal turbulence as its investors who have incurred significant financial losses now have the option to lead a class action lawsuit concerning alleged securities fraud. The Law Offices of Frank R. Cruz, a Los Angeles-based legal firm, made this announcement, signaling a pivotal moment for those impacted by the company's alleged mismanagement and misleading statements.

Details of the Lawsuit

The complaint indicates that between October 29, 2024, and May 20, 2025, Reddit failed to disclose critical information related to changes in Google's Search algorithm. These changes affected users' engagement with the platform, reflecting poorly on Reddit's traffic and advertising revenues. Specifically, the lawsuit claims that:

1. Search Algorithm Changes: The modifications made to Google's Search features, including AI Overview, led many users to find answers without clicking through to Reddit, significantly impacting the platform's user traffic.
2. Misleading Statements: The defendants in this case allegedly continued to assure investors that user rates and advertising revenues were stable, despite knowing that these claims were unfounded.
3. Zero-Click Searches: The phenomenon of zero-click searches, where Google provides answers directly on its results page, was not communicated adequately to investors, leading them to believe Reddit's traffic was stable or improving.
4. Awareness of Declining Traffic: It is alleged that Reddit's management was aware that the spike in searches for