Shares of Reddit (NYSE:RDDT) are set to have their initial public offering (IPO) today on the New York Stock Exchange. As of March 17, the IPO was between four to five times oversubscribed, which will result in its shares launching at $34, the high end of the company’s target price range between $31 and $34.

Reddit will raise $748 million from the sale of 22 million shares through the IPO, giving it a valuation of $6.5 billion. That’s compared to its 2021 private fundraising valuation of about $10 billion in 2021.

However, the forum community platform may have already found itself in legal trouble. In the “Risk Factors” section of its Form S-1 registration statement, the company warned:

“We have in the past, and may in the future, be subject to claims that we violated certain third-party intellectual property rights, which, even where meritless, can be costly to defend and could adversely affect our business, results of operations, financial condition, and prospects.”

RDDT Stock: Nokia Accuses Reddit of Patent Infringement

Below that statement, Reddit disclosed that Nokia (NYSE:NOK) had sent it a letter on March 18. In the letter, the telecommunications company wrote that it believed that Reddit had infringed on some of its patents. The exact patents were not disclosed.

Reddit did not elaborate any further on the situation besides adding that it would look in to the matter and that “non-practicing entities” had levied intellectual property claims against it in the past and may continue to do so in the future.

According to The Register, Nokia has been quite active in engaging in litigation in recent years over its wide portfolio of patents.

Still, the news shouldn’t be material enough to dampen Reddit’s exciting day, as details of the situation are still scant. It’s also unclear whether Nokia has filed any legal claim against the company.

As for the numbers, Reddit generated $804 million in revenue last year, up by 20.6% year-over-year (YOY). However, the company remains unprofitable. Its net loss totaled $158.55 million in 2022 and $90.82 million in 2023.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.