#USA #New York #Class Action #Pomerantz LLP #Reddit Inc.

Class Action Lawsuit Against Reddit, Inc.

In a significant development for investors, Pomerantz LLP, a renowned law firm specializing in securities class actions, has filed a class action lawsuit against Reddit, Inc. (NYSE: RDDT). The lawsuit comes in response to allegations of securities fraud and other unlawful business practices purportedly engaged in by Reddit and certain executives at the company. Investors with losses resulting from their investment in Reddit are encouraged to act promptly as key deadlines approach.

Overview of the Lawsuit

The class action targets investors who have purchased or acquired securities from Reddit during a specified class period. Those affected have until August 18, 2025, to apply for appointment as Lead Plaintiff. Pomerantz is calling upon potential plaintiffs to reach out to their offices to discuss the details of the case and the process regarding class membership. Interested individuals can contact Danielle Peyton by phone or email, providing pertinent information such as their mailing address, telephone number, and the number of shares purchased.

The allegations stem from a troubling trend in Reddit's financial performance. The company's report on May 1, 2025, revealed its third consecutive quarter of declining daily active user growth—causing investor concern and subsequent effects on their stock. Following the announcement, Reddit’s stock price fell by $4.96 per share, or a drop of 4.18%, closing at $113.83 on May 2, 2025.

Stock Price Declines and Analyst Downgrades

Further exacerbating the situation, Wells Fargo analysts downgraded Reddit's stock on May 19, 2025, expressing that Google Search's new AI functionalities might cause permanent disruptions to Reddit's user traffic. This announcement negatively impacted the stock, leading to a price drop of $5.24 per share, bringing it down to $107.99.

On May 21, Baird analysts followed suit with their downgrade, citing similar concerns regarding the effect of Google’s AI enhancements on Reddit's future user growth. The stock price plummeted again, this time by $9.79 per share—closing the day at $95.85, a decline of 9.27%.

About Pomerantz LLP

Pomerantz LLP is widely recognized as a leader in the legal realm of corporate, securities, and antitrust class litigation. Established over 85 years ago by Abraham L. Pomerantz, the firm has built its reputation on advocating for investors' rights against securities fraud and corporate misconduct. Pomerantz has successfully secured numerous multi-million-dollar damages awards for class members, solidifying its position as a robust contender in class action law.

If you have experienced losses stemming from your investment in Reddit during the class period, it's crucial to stay informed and consider participating in the class action. Please visit Pomerantz Law's website for more information on the lawsuit and instructions for joining the class. The firm emphasizes the importance of filing promptly before the upcoming deadlines expire.

Furthermore, potential plaintiffs should note that attorney advertising regulations apply, and previous results do not guarantee future outcomes. However, with a history of significant recoveries, Pomerantz LLP remains committed to fighting for justice on behalf of affected investors.