Gainey mckenna & egleston announces a class action lawsuit has been filed against reddit, inc. (rddt)

New york, july 17, 2025 (globe newswire) -- gainey mckenna & egleston announces that a securities class action lawsuit has been filed in the united states district court for the northern district of california on behalf of all persons or entities who purchased or otherwise acquired reddit, inc. (“reddit” or the “company”) (nyse: rddt) securities between october 29, 2024 and may 20, 2025, both dates inclusive (the “class period”). the complaint alleges that defendants failed to disclose: (i) changes in google search's algorithm and features like ai overview were causing users to stop their query on google search; (ii) these algorithm changes were materially different than prior instances of reduced traffic to the reddit website; (iii) defendants were aware that the increase in the query term “reddit” on search engines was because users were getting the sought after answer from google search without having to go to reddit, and not because they intended to visit reddit; (iv) this zero-click search reality was dramatically reducing traffic to reddit in a manner the company was unable to overcome in the short term; (v) defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and (vi) as a result, the company's public statements were materially false and misleading at all relevant times.
RDDT Ratings Summary
RDDT Quant Ranking