Judge Advances Reddit's Copyright Suit Against Perplexity AI
RDDT sits 16% above its 52-week low of $119.27 on elevated volume (3.8× avg).
Summary
A federal judge rejected most of Perplexity AI's motion to dismiss Reddit's lawsuit over unauthorized data scraping for AI training. The ruling allows Reddit to pursue core claims of copyright circumvention and conspiracy against Perplexity and three data-scraping firms. This strengthens Reddit's legal position in enforcing its data licensing model, which already includes paid deals with Google and OpenAI. The decision follows Reddit's strong Q2 results and adds a positive legal catalyst, though the case remains in early stages with no damages specified. A separate scraping suit against Anthropic is also ongoing.
At the time of this announcement, RDDT was trading at $137.76 on NYSE in the Technology sector, with a market capitalization of approximately $26.5B. The 52-week trading range was $119.27 to $282.95. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.