#USA #New York #Class Action #Pomerantz #Reddit

Investor Alert: Class Action Lawsuit Against Reddit, Inc.

In a significant development, Pomerantz LLP has announced a class action lawsuit against Reddit, Inc., trading under the NYSE symbol RDDT. This legal action follows a series of unfortunate events for the company, raising concerns among investors about potential securities fraud. Those affected by this situation are encouraged to file their claims by the impending deadline of August 18, 2025.

Overview of the Class Action

Pomerantz LLP, a law firm renowned for its expertise in corporate and securities class action litigation, is spearheading this lawsuit. The firm specializes in fighting for the rights of investors who believe they’ve been wronged due to corporate misconduct, misleading financial practices, and other fraudulent activities. Investors who purchased Reddit's stock during the specific class period could be eligible to join the lawsuit as lead plaintiffs. Facilitating claims can be initiated by contacting Danielle Peyton at Pomerantz using the provided contact information.

Financial Backdrop

The backdrop to this lawsuit is a troubling financial landscape for Reddit, which reported its first quarter earnings on May 1, 2025. During this announcement, Reddit revealed a concerning trend: the decline of daily active users for the third consecutive quarter. Following this revelation, there was a notable drop in Reddit's stock price, illustrating investor concern.

On May 2, 2025, following the earnings report, Reddit's stock experienced a considerable decline, falling by $4.96, or 4.18%, closing at $113.83 per share. Analysts expressed their worries, particularly citing the impact of Google Search's new AI capabilities, which could be affecting Reddit's traffic and user engagement.

In subsequent weeks, more analysts weighed in. On May 19, analysts from Wells Fargo downgraded Reddit's stock, projecting a dip in user traffic due to changes in Google Search’s algorithm. This sentiment led to another decline in stock prices, dropping Reddit's shares by $5.24, or 4.63%. This pattern of downgrades continued, with Baird analysts also revising their position on Reddit, verifying the impact of AI technology on the platform. By May 21, Reddit's shares plummeted further, closing at $95.85, a drop of $9.79, or 9.27%.

Participation in the Class Action

Investors who feel they have incurred losses due to Reddit's trading practices are urgently advised to join the class action. Queries can be made via email or by phone to initiate their participation, ensuring they include vital information such as their mailing address, phone number, and details regarding the number of shares purchased. By participating in this class action, these investors not only seek justice but could also recover some of their losses.

About Pomerantz LLP

Established over 85 years ago, Pomerantz LLP is recognized as one of the top law firms handling corporate, securities, and antitrust class action cases. Founded by the late Abraham L. Pomerantz, the firm holds a venerable reputation for protecting the rights of investors and negotiating significant settlements for class members. Investors seeking information on joining the lawsuit or need assistance can find details on their official website at www.pomerantzlaw.com.

As time is of the essence, investors are encouraged to act swiftly to ensure they do not miss vital deadlines, as the intricacies of securities law can be challenging without the assistance of competent legal counsel. By standing together, affected investors can seek accountability from companies like Reddit, ensuring better transparency and standards in corporate governance.

For further inquiries, contact Danielle Peyton at Pomerantz LLP by email at [email protected] or call 646-581-9980, extension 7980. It is critical for all investors to stay informed and proactive during these uncertain times in the financial landscape.