Pomerantz Law Firm Alerts Investors of Class Action Against Reddit: Key Dates and Details

Investor Alert: Pomerantz Law Firm Class Action Lawsuit Against Reddit, Inc.

On June 27, 2025, Pomerantz LLP, a leading law firm specializing in corporate and securities class litigation, announced the filing of a class action suit against Reddit, Inc. (NYSE: RDDT). The firm urges investors who have experienced losses on their investments in Reddit to take timely action to safeguard their rights. The filing stems from allegations that Reddit and certain executives may have engaged in securities fraud or other unlawful practices that impacted their investors.

Background of the Case

Investors should take note of the critical deadline: those who purchased or otherwise acquired Reddit securities during the Class Period have until August 18, 2025, to request the court to appoint them as Lead Plaintiff. Interested parties can find further details and obtain a copy of the complaint by visiting Pomerantz's website.

The class action follows a concerning trend for Reddit. In its first-quarter financial report released on May 1, 2025, the company reported a decline in daily active users for three consecutive quarters, which sent its stock tumbling by 4.18% to close at $113.83 on May 2.

Analyst Downgrades and Stock Performance

The situation continued to deteriorate for Reddit as analysts expressed growing concern over its business prospects. On May 19, 2025, Wells Fargo downgraded Reddit’s stock with lowered price targets, citing the disruptive impact of Google Search's new AI features on user traffic to Reddit—news that resulted in a further drop of 4.63%, closing at $107.99 per share on May 10.

Baird analysts followed suit on May 21, 2025, also downgrading the stock based on the same AI-related concerns, which caused Reddit’s stock to plummet by 9.27%, bringing it down to $95.85 per share.

Pomerantz LLP’s Role

Founded over 85 years ago, Pomerantz LLP has established itself as a premier firm in the areas of corporate and antitrust class action lawsuits. The firm is known for advocating diligently for victims of securities fraud and corporate misconduct.

Pomerantz has a successful history, recovering significant financial awards for its clients through persistence and expertise in these complex cases. With multiple offices in major cities such as New York, Chicago, and London, their reach and commitment to investor rights are substantial.

For those wishing to join the class action, it’s crucial to act swiftly. Interested in learning more? Prospective class members are advised to reach out to Danielle Peyton at Pomerantz LLP via email at [email protected] or by phone at 646-581-9980, extension 7980. Emails should include essential details such as your mailing address, phone number, and the number of shares purchased.

Conclusion

Investors who have suffered losses due to the alleged misconduct of Reddit, Inc. are encouraged to explore their legal options. The upcoming deadline for becoming a Lead Plaintiff is fast approaching, making prompt action essential for eligible shareholders. With the guidance of Pomerantz LLP, they may navigate this litigation successfully and seek redress for their losses.