Democratizing finance has been our guiding star since our earliest days. "We stand in support of our customers and the freedom of retail investors to shape their own financial future. Robinhood, Reddit App Downloads Surge as Investors Take on Wall Street.Robinhood Could Face Tighter Regulation Over GameStop Actions.First-time Investors Could Be Ultimate Casualties of GameStop Gamble.The company acknowledged its decision to halt transactions and said that it was "a risk-management decision, and was not made on the direction of the market makers we route to." In a blog post published on Thursday, Robinhood stated that, on Friday, it would resume limited trading of the stocks that were temporarily blocked. The group was up to more than 40,000 members at the time of this article's posting on Friday. Individuals have also started sharing information about Robinhood in the subreddit r/ClassActionRobinHood, which emerged on Thursday. Newsweek has contacted ChapmanAlbin for comment, but did not hear back in time for publication.Īnyone who has been affected by Robinhood's limitations of stock trading on Thursday can join in on the class-action lawsuits. Upon visiting the law firm's website, potential plaintiffs are greeted with a popup asking, "Are you a Robinhood user who has suffered losses?" There's also a form that can be filled out to participate in the claim against the trading app. Ohio law firm ChapmanAlbin, who specializes in investment fraud and losses, is also taking action against Robinhood on behalf of its clients. He's accusing Robinhood of choosing to "protect institutional investment at the detriment of retail customers," and pointing to restrictions that were put on trades involving companies like AMC Theaters, Blackberry and Nokia on Thursday.
Meanwhile in Illinois, another Robinhood user named Richard Gatz, an attorney, filed a similar suit against the trading app on Thursday. Newsweek has reached out to Cabeceiras for comment, but did not hear back in time for publication.
If you are interested, please email: Thank you.- Alex Cabeceiras January 29, 2021 We are hearing from individuals from every state. Nelson is joined by more than 100 other class members represented in the lawsuit.
The plaintiff in the suit, a Massachusetts man named Brendon Nelson, is described in the court filing as a Robinhood user who "lost out on all earning opportunities" as GameStop shares rose significantly. The lawsuit also claims that Robinhood's decision to temporarily prevent the purchasing of various securities, like GME stock, was "done purposefully and knowingly to manipulate the market for the benefit of people and financial who were not Robinhood's customers."Įlsewhere, the filing cites a message reportedly sent out from Robinhood's Twitter account in March 2016, which said, "Let the people trade." The class-action complaint characterizes that statement as a "mantra," and argues that the company has "disregarded their mantra and have blocked access for millions of its customers to trade particular securities." Filed in a Manhattan federal court on Thursday, the lawsuit alleges that Robinhood "deprived their customers of the ability to use their service" and "abruptly, purposefully, willfully, and knowingly pulled GME from their app." Robinhood has been hit with a class-action lawsuit, after the stock-trading app halted GameStop trading on its platform on Thursday.
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