#United States #New York #Class Action #Pomerantz Law Firm #Reddit

Investor Alert: Class Action Against Reddit

Pomerantz LLP, a prominent law firm known for its advocacy in corporate and securities litigation, has officially announced the filing of a class action lawsuit against Reddit, Inc. This action has been initiated in response to concerns regarding securities fraud and other unlawful business practices that might have affected investors adversely.

The firm is calling upon individuals who have suffered financial losses as a result of their investments in Reddit (NYSE: RDDT) to take action before the approaching deadlines. Specifically, those who have purchased or acquired Reddit securities during the designated class period should reach out to the firm. Interested parties must act swiftly as they have until August 18, 2025, to secure their status as Lead Plaintiff in this significant case.

The Background

The trouble for Reddit began when the company disclosed its financial results for the first quarter of 2025, revealing a troubling trend of declining daily active users for the third consecutive quarter—an indicator that many believe reflects a deeper issue within the company. Following this announcement, the stock price of Reddit saw a significant drop, falling $4.96 per share, representing a 4.18% decline on May 2, 2025.

This downturn was further exacerbated when analysts from Wells Fargo downgraded the stock on May 19, expressing concerns over new artificial intelligence features being rolled out by Google Search, which they believed would pose a sustained threat to Reddit's user engagement. As a consequence, Reddit's stock plummeted again, this time by $5.24, marking a 4.63% decline.

Another blow came shortly after, with Baird analysts echoing similar concerns and announcing a downgrade as well on May 21. This news led to a staggering decline of $9.79 per share, or 9.27%, bringing Reddit's stock down to $95.85. These occurrences have raised considerable alarms among shareholders, igniting widespread discussions regarding the viability of Reddit's future as an advertising platform and social media hub.

How to Participate in the Class Action

Investors who believe they have been adversely affected during the class period are encouraged to contact Pomerantz LLP's designated attorney, Danielle Peyton, via email or phone for further instructions on how to join this class action. When reaching out, it is advisable to provide personal details such as mailing address and the number of Reddit shares purchased to facilitate the process efficiently.

Access to the class action complaint and further information is available at Pomerantz Law Firm's website. This class action aims to hold Reddit and its officers accountable for any possible wrongdoing, ensuring that investors' rights are upheld.

About Pomerantz LLP

With a rich history spanning over 85 years, Pomerantz LLP is recognized as one of the leading law firms in the domain of corporate, securities, and antitrust class actions. Established by the late Abraham L. Pomerantz, the firm has persistently worked to recover damages for victims of securities fraud and corporate misconduct. The firm has a proven track record of achieving substantial settlements and judgments in favor of its clients, reinforcing its position as a reliable advocate for shareholders.

As this legal matter develops, it is vital for investors to remain informed and proactive about their rights and opportunities to contest any potential infractions that may have impacted their investments. The next few weeks could be crucial for those looking to streamline their participation in this class action lawsuit against Reddit, so timely action is strongly advised.