Tamraz v. Reddit, Inc.
U.S. District Court for the Northern District of California
- Court
- U.S. District Court for the Northern District of California
- Docket
- No. 3:25-cv-05144
- Parties
- Anthony Joseph Tamraz, Jr. v. Reddit, Inc., Steven Huffman (CEO), Andrew Vollero (CFO), and Jennifer Wong (COO)
- Claim type
- securities
- Filed
- 2025-06-18
- Outcome
- No judgment entered; the case remains in pretrial litigation.
Summary
This post-IPO securities fraud class action was filed in the Northern District of California on behalf of investors who purchased Reddit (NYSE: RDDT) stock. The complaint alleges Reddit and its executives misrepresented and downplayed the impact that Google's use of AI in search results had on Reddit's user growth, asserting that Google's AI answers eliminated users' need to click through to Reddit. Plaintiffs point to Reddit's May 1, 2025 disclosure of slowing daily-active-user growth (shares fell over 4%) and a May 21, 2025 analyst downgrade tied to Google AI concerns (shares fell over 9%) as corrective disclosures. The case names CEO Steven Huffman and other officers as individual defendants.