Rosen Law Firm Invites Reddit Investors to Join Class Action Lawsuit for Securities Fraud

The Rosen Law Firm, a respected global investor rights legal firm, is currently encouraging purchasers of Reddit, Inc. securities (NYSE: RDDT) who acquired shares during the defined Class Period from October 29, 2024, to May 20, 2025, inclusive, to participate in a class action lawsuit. As outlined, interested parties must move quickly, as the deadline for lead plaintiff status is set for August 18, 2025.

Why Join the Class Action?

If you have purchased Reddit's stock during this timeline, you may qualify for compensation without incurring out-of-pocket fees or costs, thanks to a contingency fee arrangement applicable to the case. The Rosen Law Firm has established its reputation based on a robust history of successfully leading numerous similar actions, which offers potential claimants valuable reassurance about their legal representation.

To join the class action, individuals can visit Rosen Legal's submission form, or reach out directly to Phillip Kim, Esq. at 866-767-3653 or via email at [email protected]

Background of the Allegations

The essence of the allegations is regarding misrepresentation associated with Reddit's operational statistics during the aforementioned Class Period. The defendants purportedly misled investors by indicating that user engagement was stable while failing to disclose significant shifts in Google's search algorithm and user behavior affecting the site. The key points raised in the suit include:

1. Decreased Traffic: It has been claimed that changes in Google’s algorithms, particularly in features like AI Overview, were causing users to fulfill inquiries directly through Google without needing to visit Reddit, resulting in a drop in site engagement.

2. Marketing Forecasts: Assertions were made implying that Reddit’s expected growth in user engagement and advertising revenue lacked a realistic foundation, which could have influenced investor decisions significantly.

3. Impact of Zero-Click Searches: The zero-click search phenomenon highlighted that users were resolving queries straight from Google, inhibiting click-through to Reddit’s site and resulting in a notable decline in traffic.

The cumulative effect of these disclosures, when brought to light, allegedly caused substantial damage to investors as the stock price effectively dropped following the revelations.

Importance of Qualified Representation

Rosen Law Firm places emphasis on the importance of engaging qualified legal counsel capable of successfully navigating the ins-and-outs of securities litigation. Many firms publicizing similar cases may not possess the necessary experience or resources that Rosen Law Firm unequivocally offers. It is, therefore, crucial for potential investors to exercise due diligence when selecting legal representatives.

The firm, known for securing the most prominent settlements in securities class actions related to Chinese companies, has consistently been recognized for its effectiveness. In 2019 alone, over $438 million was recovered for investors through their various successful cases.

In conclusion, if you believe you qualify as a Reddit investor affected by the purported actions, timely participation in this class action could be vital in asserting your rights. Remaining informed on legal developments through platforms such as Rosen Law Firm's social media accounts on LinkedIn, Twitter, and Facebook can also keep you updated on this and other related legal issues.

For further assistance in this matter, contact the Rosen Law Firm’s offices at:

Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll-Free: (866) 767-3653
Fax: (212) 202-3827
Email: [email protected]
www.rosenlegal.com