#United States #New York #Class Action #Pomerantz LLP #Reddit Inc.

Investor Alert: Pomerantz Law Firm and Reddit, Inc.

Pomerantz LLP has recently made headlines with its announcement concerning a class action lawsuit filed against Reddit, Inc. This legal action is centered around claims that the company, along with certain executives and directors, may have engaged in securities fraud or other unlawful business practices.

Background of the Lawsuit

The lawsuit specifically targets investors who have incurred losses related to their investment in Reddit's stock (NYSE: RDDT). Individuals who believe they are impacted by this situation are encouraged to reach out to the firm for more information. Danielle Peyton, a representative of Pomerantz, is available at [email protected] or by phone at 646-581-9980, and via toll-free number 888.4-POMLAW, extension 7980. For those contacting via email, it is advised to include contact details and the number of shares purchased.

Key Dates and Deadlines

Investors should be particularly mindful of the upcoming deadlines associated with this class action lawsuit. Any investor who has purchased or otherwise acquired Reddit securities during the designated Class Period has until August 18, 2025, to file a request for Court appointment as Lead Plaintiff. Interested parties can obtain a copy of the Complaint through Pomerantz's website at www.pomerantzlaw.com.

Significant Events Leading to the Lawsuit

On May 1, 2025, Reddit announced its financial results for the first quarter, revealing a concerning trend of declining daily active user growth for the third consecutive quarter. This triggered a notable drop in Reddit’s stock price, which fell by $4.96 (4.18%), closing at $113.83 the following day.

In subsequent weeks, analysts from Wells Fargo and Baird downgraded Reddit's stock, citing Google's incorporation of new AI features as a substantial risk to user traffic and growth. Following their reports, Reddit's stock continued to decline significantly, ultimately leading to a closing price of $95.85 per share on May 21, 2025 after dropping $9.79 (9.27%). This alarming pattern raised substantial concerns among investors regarding the future trajectory of the company.

About Pomerantz Law Firm

Pomerantz LLP is renowned in the sphere of corporate, securities, and antitrust class litigation. With offices located in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, Pomerantz has established itself as a venerable entity since its inception over 85 years ago. The firm, founded by Abraham L. Pomerantz, is honored for pioneering the practice of securities class actions, consistently advocating for the rights of investors who have suffered from corporate misconduct or securities fraud.

As the firm approaches the plunging stock’s ramifications critically, its history of securing multimillion-dollar damage awards for class members highlights its commitment to justice. Investors are said to act promptly since the situation evolves daily, and further delays may hinder the possibility of recovery from losses incurred due to potential corporate malfeasance.

Conclusion

In conclusion, the legal landscape surrounding Reddit’s class action lawsuit is shaping up to be a pivotal moment for many investors. Those feeling the impact of this situation should closely track the developments and consider contacting Pomerantz LLP to explore their legal options. Given the tight deadlines, proactive measures will be necessary for those seeking to recover their investments.