RDDT INVESTOR NEWS: Reddit, Inc. is being Investigated for Securities Fraud

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www.globenewswire.com/news-release/2025/06/08/3…

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For the folks who want to know the cause of the investigation without needing to click through to the article:

Why is Reddit being Investigated?

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’s use of Artificial Intelligence (“AI”) in Google’s search results did not have a material impact on Reddit’s user growth.

In truth, Google’s use of AI dented Reddit’s 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’s AI search results.

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The good old case of the mushroom eating the fungus.

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Misleading, this is just some ambulance chasing law firm throwing stuff at the wall. It's unlikely that anything will come of this.

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While I, personally, also think the point brought up feels a bit dubious - I do wonder what perspective lawyers with an expertise in investment/financial law have there. An additional "second opinion" by an independent law office on the feasibility of the claim would be interesting to read, if someone knows of any.

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$10,000 fine and a mildly worded letter is the best I can do.

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Leopards Ate His Face?

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