Online Trading Platform Sues Reddit for 'Fraudulent Clicks' in Breach of Contract Action

Reddit charged online stock trading platform LevelFields for clicks to link to its website, but the plaintiff’s system didn’t log traffic corresponding to the links it was charged for, alleged a breach of contract class action Wednesday (docket 4:24-cv-02760) in U.S. District Court for Northern California. LevelFields contracted with Reddit on Sept. 9, 2022, authorizing Reddit to place its ad on the social networking platform, said the complaint. The plaintiff contacted Reddit for click logs that would show corresponding associated IP addresses, but Reddit claiming it was unable to provide that and instead provided only logs without IP addresses, it said. LevelFields alleges that representation is “false, because Reddit has to know where traffic was coming from for security and monitoring purposes.” Alternatively, the defendant “is failing to provide minimal levels of security and monitoring of clicks on its platform, in violation of its duties,” said the complaint. Plaintiff and class members were charged by Reddit “for fraudulent clicks,” it said. LevelFields also claims violation of California’s Unfair Competition Law. It seeks an order enjoining Reddit from the practices alleged; awards of restitution, damages and disgorgement; attorneys’ fees and costs; and pre- and post-judgment interest.