NEW YORK, May 31, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP<\/strong><\/a> announces an investigation into Reddit, Inc. (NYSE: RDDT) for potential violations of the federal securities laws.<\/p>\n If you invested in Reddit, you are encouraged to obtain additional information by visiting: https:\/\/www.bfalaw.com\/cases-investigations\/reddit-inc-securities-fraud-class-action<\/strong><\/a>.<\/p>\n Why is Reddit being Investigated? <\/strong><\/p>\n Reddit owns and operates the eponymous social news aggregation, forum, and social media platform. Reddit receives a significant portion of its user traffic from individuals seeking answers to questions using Google Search. During the relevant period, Reddit assured investors that Google\u2019s use of Artificial Intelligence (\u201cAI\u201d) in Google\u2019s search results did not have a material impact on Reddit\u2019s user growth.<\/p>\n In truth, Google\u2019s use of AI dented Reddit\u2019s user growth by eliminating the need for individuals to visit and click through to Reddit to get answers to their questions. Rather, the answers appeared through Google\u2019s AI search results.<\/p>\n The Stock Declines as the Truth is Revealed<\/strong><\/p>\n On May 21, 2025, Wall Street analyst Baird cut its Reddit stock price target over concerns that Google\u2019s AI capabilities are stifling Reddit\u2019s user growth. On this news, the price of Reddit stock fell $9.79 per share, or over 9%, from $105.64 per share on May 20, 2025, to $95.85 per share on May 21, 2025.<\/p>\n Click here for more information: <\/strong>https:\/\/www.bfalaw.com\/cases-investigations\/reddit-inc-securities-fraud-class-action<\/strong><\/a>.<\/strong><\/p>\n What Can You Do?<\/strong><\/p>\n If you invested in Reddit you may have legal options and are encouraged to submit your information to the firm.<\/p>\n All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.<\/p>\n Submit your information by visiting:<\/strong><\/p>\n https:\/\/www.bfalaw.com\/cases-investigations\/reddit-inc-securities-fraud-class-action<\/strong><\/a><\/p>\n Or contact: Why Bleichmar Fonti & Auld LLP?<\/strong><\/p>\n Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs\u2019 Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.\u2019s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.<\/p>\n For more information about BFA and its attorneys, please visit https:\/\/www.bfalaw.com<\/a>.<\/p>\n
Ross Shikowitz
ross@bfalaw.com<\/a>
212-789-3619<\/p>\n
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