Reddit investors have filed a lawsuit over the impact of Google search and AI traffic.

A proposed class action lawsuit filed on June 18 alleges that Reddit misled investors regarding the impact of changes in Google search algorithms and artificial intelligence summaries. According to the lawsuit filed by investors in the Northern District of California, on May 21, analysts downgraded Reddit's stock rating due to concerns about permanent traffic interruptions, causing Reddit's stock price to drop by 9.3%. By the close of the US stock market on June 18, Reddit had risen 30.72% in the past month.