SDNY judge denies Perplexity's motion to dismiss Reddit's data-scraping lawsuit
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What happened
A federal judge in the Southern District of New York denied Perplexity's motion to dismiss Reddit's lawsuit over data scraping, Reuters reported on 31 July 2026. The ruling, by Judge Paul Engelmayer, allowed Reddit to keep pressing claims that Perplexity and three data scrapers unlawfully circumvented protections to take Reddit content for AI training. The decision let the case proceed. It was not a finding that Perplexity was liable, and no damages were set.
Reuters headlined its report as Perplexity AI losing its bid to toss the Reddit lawsuit over data scraping. A Reuters update dated 3 August 2026 quoted a statement from Oxylabs, one of the scraping companies Reddit sued. Oxylabs said the Friday ruling addressed only arguments made by Perplexity and SerpApi. It said its own motion to dismiss Reddit's case against it was still pending, so the ruling did not decide the claims against every company named in the suit.
Key points
- Judge Paul Engelmayer of the Southern District of New York denied Perplexity's motion to dismiss Reddit's suit, reported 31 July 2026.1
- Reddit may keep pressing claims that Perplexity and data scrapers circumvented protections to take content for AI training.1
- Oxylabs said the ruling addressed only Perplexity's and SerpApi's arguments and that its own motion to dismiss was still pending.1
- The ruling did not decide liability, and no damages were set.1
Why it matters
With the motion denied, Reddit's claims continue against Perplexity. The ruling does not decide liability, and no damages have been set, so the size of any exposure is not stated.
The claims concern how content was obtained for AI training, so the case bears on the legal footing of one of Perplexity's data inputs.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series B | Jan 4, 2024 | $520M | $74M | IVP |
| Funding round | Jun 27, 2024 | $3.0B | $250M | Unknown |
| Funding round | Dec 18, 2024 | $9.0B | $500M | Institutional Venture Partners |
| Funding round | May 12, 2025 | $14B | $500M | Accel |
| Funding round extension | Jul 17, 2025 | $18B | $100M | Unknown |
| Funding round | Sep 10, 2025 | $20B | $200M | Unknown |
Updated
Fact-check
- A judge denied Perplexity's motion to dismiss Reddit's data-scraping lawsuit, reported 31 July 2026.[1] Reuters was blocked for the checker; the headline and date are in the event data, and the writer read an excerpt.Partly verified
- The ruling was made by Judge Paul Engelmayer in the Southern District of New York, on claims against Perplexity and three data scrapers.The judge, court and number of scrapers come from the event's research data on [1] Reuters; the page was blocked for the checker.Partly verified
- A 3 August 2026 Reuters update quoted Oxylabs saying the ruling addressed only Perplexity's and SerpApi's arguments and that its own motion to dismiss was pending.Rests on the writer's read of an excerpt of [1] Reuters; the page was blocked for the checker.Partly verified
- No damages have been set.From the event's research data on [1] Reuters; not checked by the checker.Partly verified
Sources
- [1]Reuters (opens in a new tab)Perplexity AI loses bid to toss Reddit lawsuit over data scraping
