According to the Complaint, Reddit, Inc. is a social media platform and forum-style website where users share and discuss content through posts and comments, organized into communities called subreddits. It has often been described as "the front page of the internet" due to its curated content and ability to surface trending topics. This class action was filed against Reddit and three of its Officers.

A significant portion of Reddit’s user traffic is from individuals seeking answers to questions using Google Search. In 2024, Google Search began implementing new Artificial Intelligence (“AI”) capabilities such as AI Overviews, a feature that uses generative AI to provide concise and informative search results, often appearing at the very top of the page.

The Complaint alleges that during the Class Period, Defendants made false and misleading statements, and failed to disclose, that: (i) changes in Google Search’s algorithm and features like AI Overview were causing users to stop their query on Google Search; (ii) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website; (iii) 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; (iv) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term; and (v) Defendants, therefore, lacked a reasonable basis for its outlook on user rates and advertising revenues.