According to the lawsuit, defendants made materially false and/or misleading statements and/or failed to disclose that:
- changes in Google Search’s algorithm and features like AI Overview were causing users to stop their query on Google search;
- these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website;
- 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;
- this zero-click search reality was dramatically reducing traffic to Reddit in a manner Reddit was unable to overcome in the short term; and
- defendants, therefore, lacked a reasonable basis for its outlook on user rates and advertising revenues.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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