Bleichmar Fonti & Auld LLP Investigates Reddit, Inc. for Potential Securities Law Violations
New York, June 14, 2025 – Bleichmar Fonti & Auld LLP, a leading securities law firm, has announced an investigation into Reddit, Inc. (NYSE: RDDT) over possible violations of federal securities laws. Investors in Reddit are encouraged to learn more and consider their legal options by visiting the firm's dedicated investigation page: BFA Law - Reddit Investigation.
Reasons Behind the Investigation
Reddit operates the popular social news aggregation and forum platform. A significant portion of Reddit’s traffic comes from users searching for answers on Google. During the relevant timeframe, Reddit assured investors that Google's integration of Artificial Intelligence (AI) in its search results had no material effect on Reddit’s user growth.
However, evidence suggests otherwise. Google’s AI-powered search results delivered answers directly to users, reducing the need for them to click through to Reddit. This shift negatively affected Reddit’s user growth, contrary to the company’s earlier statements.
Stock Price Drop Following Analyst Report
On May 21, 2025, Wall Street analyst Baird lowered its price target for Reddit stock, citing concerns over the impact of Google's AI technology on Reddit’s user metrics. Following the announcement, Reddit’s shares dropped $9.79, or over 9%, falling from $105.64 on May 20 to $95.85 per share the next day.
Investor Actions and Legal Options
If you invested in Reddit, you may have legal rights related to this matter. Bleichmar Fonti & Auld LLP is accepting submissions from Reddit shareholders who want to explore possible claims. Representation is offered on a contingency fee basis, meaning there are no upfront costs or fees unless the firm recovers compensation on your behalf.
Shareholders will not be responsible for court costs or litigation expenses. The firm seeks court approval before any fees or expenses are deducted. Investors interested in submitting their information can do so here: BFA Law - Reddit Investigation.
For direct inquiries, contact Ross Shikowitz at ross@bfalaw.com or by phone at 212-789-3619.
About Bleichmar Fonti & Auld LLP
Bleichmar Fonti & Auld LLP is a prominent international law firm specializing in securities class actions and shareholder litigation. The firm was ranked among the Top 5 plaintiff law firms by ISS SCAS in 2023. Its attorneys have been recognized as Titans of the Plaintiffs’ Bar by Law360 and have earned SuperLawyers honors from Thompson Reuters.
Recent successes include recovering over $900 million from Tesla, Inc.’s Board of Directors and $420 million from Teva Pharmaceutical Industries Ltd. For more details about the firm and its attorneys, visit BFA Law.
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