Reddit, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Reddit, Inc. (RDDT).

If you purchased or held Reddit, Inc. securities between October 29, 2024 and May 20, 2025, you may be eligible to join this securities investigation and seek compensation for your losses.

About Reddit, Inc.

Reddit, Inc. is a popular social media platform known for its vast array of online communities, or “subreddits,” where users can share content, discuss topics, and vote on posts. The company went public in March 2024, trading under the ticker symbol RDDT on the New York Stock Exchange.

Since its IPO, Reddit has reported substantial revenue and user growth, positioning itself as a major player in the online social media landscape. However, the company’s business model relies heavily on user engagement and external traffic sources, making it sensitive to shifts in online behavior and search engine algorithms.

The Allegations

The investigation centers on whether Reddit, Inc. made materially misleading statements and omissions to investors regarding several key aspects of its business.

Investors allege that Reddit misrepresented or failed to disclose important information about:

• User growth metrics and the sustainability of that growth
• Operational efficiency and the company’s ability to manage costs
• Heavy reliance on external traffic sources, especially Google Search, which could impact future growth and engagement
• Data security practices and potential vulnerabilities

Concerns intensified after Reddit’s Q4 2024 and Q1 2025 earnings releases. Despite reporting strong revenue and user numbers, the market reacted negatively to disclosures about operational inefficiencies and the company’s dependence on outside traffic.

Additionally, a cluster of insider sales and negative analyst reports contributed to a significant decline in Reddit’s stock price in early May 2025.

These events have prompted questions about whether investors were given a full and accurate picture of Reddit’s business risks during the proposed class period.

Proposed Class Period

The proposed class period for this investigation is October 29, 2024 to May 20, 2025. This timeframe covers when the alleged misleading statements and omissions may have affected the price of Reddit securities.

If you purchased or held Reddit, Inc. securities during this period, you could be included in any potential class action that may arise from the investigation.

The class period is important because it determines which investors may be eligible to seek compensation for losses related to the alleged misconduct. Please note that the class period may change as the investigation progresses.

Your Rights and Next Steps

As an investor, you have the right to know whether you were affected by any potential securities fraud.

Here’s what you can do next:

1. Review your investment records to confirm if you purchased or held Reddit, Inc. securities between October 29, 2024 and May 20, 2025.
2. Stay informed about the progress of the investigation and any updates regarding a potential lawsuit.
3. Consider submitting your information using the below form to ensure you are included in any future communications and potential claims process.

Lawyers are ready to help you understand your options and guide you through the process if a class action is filed.

You May Be Entitled to Compensation

Securities investigations are time-sensitive. If you purchased Reddit, Inc. securities during the proposed class period, you may be eligible to join any potential class action and seek compensation for your losses.

Completing the below form ensures that you are considered for inclusion in the investigation and any future lawsuit.

Act now—investigations like this move quickly, and your rights could be affected if you wait.