#None #Pomerantz #Reddit #RDDT

Investor Alert: Class Action Against Reddit, Inc.

On July 7, 2025, Pomerantz LLP announced the initiation of a class action lawsuit directed at Reddit, Inc., a leading platform for online community engagement, which trades under the NYSE symbol RDDT. The firm is urging investors who have suffered financial losses as a result of their investment in Reddit to consider participating in this legal action.

The lawsuit highlights concerns regarding possible securities fraud and unlawful business practices that may have occurred within Reddit's upper management and its board of directors. Investors seeking to become involved in this class action are invited to contact Danielle Peyton at danielle.p@pomerantzlaw.com or reach out via phone at 646-581-9980, toll-free at 888-4-POMLAW, Ext. 7980. When contacting via email, investors are encouraged to provide their mailing address, phone number, and the number of Reddit shares they purchased.

Important Deadlines

Investors have until August 18, 2025, to petition the court for appointment as Lead Plaintiff for this action if their investment in Reddit occurred during the designated class period. A copy of the formal complaint is accessible via the Pomerantz website at www.pomerantzlaw.com.

Financial Performance and Stock Reactions

The backdrop for this lawsuit involves Reddit’s alarming financial results for the first quarter of 2025, which were made public on May 1, 2025. During this announcement, Reddit revealed its third consecutive quarter of stagnating daily active user growth—a critical metric for social media platforms that directly impacts revenue generation.

This troubling news led to a significant drop in Reddit's stock price, plummeting $4.96 per share (4.18%) to close at $113.83 on May 2, 2025. Following this, on May 19, 2025, Wells Fargo analysts downgraded Reddit's stock, forecasting a grim outlook due to new AI features implemented by Google Search, suggesting these changes could disrupt user traffic to Reddit permanently.

Consequently, on May 10, 2025, Reddit's shares fell another $5.24 (4.63%), ending the day at $107.99 per share. This downward trend continued, as just days later on May 21, further downgrades from Baird analysts reaffirmed concerns over the impact of Google's AI on Reddit's user growth trajectory. In response to these compounded concerns, Reddit's stock experienced a steep decline of $9.79 (9.27%), reaching a low of $95.85 per share

Pomerantz LLP’s Legacy

Pomerantz LLP is recognized as one of the nation's leading firms specializing in corporate, securities, and antitrust class action litigations. Founded by the late Abraham L. Pomerantz, often called the dean of the class action bar, the firm has upheld a tradition of advocating for victims of securities fraud and other corporate malpractices for over 85 years. With offices strategically located in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, Pomerantz has successfully recovered significant damages for class members in various high-profile cases. Their commitment to justice underscores their role in the ongoing fight against corporate misconduct.

For ongoing updates and further insights about the class action against Reddit, affected investors and interested parties are encouraged to follow developments closely and engage with the firm to understand their rights fully and explore their legal options.