Shareholders of Reddit, Inc. Urged to Contact Levi & Korsinsky Regarding Legal Rights

Attention Reddit, Inc. Shareholders

In a recent advisory, Levi & Korsinsky, LLP has alerted investors in Reddit, Inc. about a critical class action securities lawsuit that could impact their rights. Shareholders who believe they may have suffered losses as a result of alleged securities fraud between October 29, 2024 and May 20, 2025 should take action before the August 18, 2025 deadline to discuss the matter with a representative.

What You Need to Know

The lawsuit aims to recover losses incurred by investors due to misleading statements and concealment of critical information related to the company’s operational performance. It accuses the defendants of failing to disclose the real impact of changes in Google Search's algorithm that significantly affected traffic to the Reddit platform.

Key Allegations:

1. Deceptive Statements: The complaint claims that defendants misled investors by failing to disclose that significant traffic drops to Reddit were primarily due to changes in Google Search’s features, such as AI Overview.
2. Misrepresentation of Traffic Trends: Unlike previous instances where traffic decreased, the current situation indicated users were sourcing desired answers directly from Google's search results, leading to reduced traffic on Reddit itself.
3. Insufficient Forecasts: The company reportedly lacked a reasonable basis for its outlook on user engagement and advertising revenues, leading to major discrepancies in its public statements and the actual realities of its operational challenges.

Why Act Now?

Affected shareholders have a limited time to respond. If you have incurred losses during the relevant period, contacting Levi & Korsinsky is crucial for determining your rights and potentially being appointed as a lead plaintiff in the case. Filing a claim does not require you to pay any out-of-pocket costs; this opportunity comes at no financial risk to the investors involved.

What Can You Expect?

Levi & Korsinsky has a notable reputation, having advocated for shareholders throughout its 20-year history, securing hundreds of millions of dollars for clients. The firm boasts a wealth of experience in complex securities litigation, ensuring investors receive expert guidance. Their success has consistently placed them among the top securities litigation firms in the United States, as recognized by ISS Securities Class Action Services.

Next Steps

If you are a shareholder of Reddit, Inc. and were impacted by these events, reach out to Joseph E. Levi, Esq. at Levi & Korsinsky by calling (212) 363-7500 or email at [email protected]. You can also find more information through their website on how to formally submit your situation and participate in the lawsuit.

Final Thoughts

This is a pivotal moment for impacted Reddit investors, and understanding your legal rights and options is essential. Don’t delay in reaching out to seek the potential compensation you deserve. The deadline for action is August 18, 2025, so make sure to get in touch soon to discuss your situation and explore your options.