Class Action Lawsuits Against Robinhood Filed After Trading Company Restricts Transactions on GameStop and Other Stocks
The commission-free stock trading and investing platform Robinhood is facing at least two lawsuits as of early Thursday afternoon. They come in response to transaction restrictions on GameStop and other stocks at the center of an incredible run-up.
One lawsuit is a class action complaint filed in New York by Brendon Nelson. It alleges that Robinhood “purposely, willfully, and knowingly removing the stock ‘GME’ [GameStop] from its trading platform in the midst of an unprecedented stock rise thereby deprived retail investors of the ability to invest in the open-market and manipulating the open-market.”
Another lawsuit was filed in Chicago by Richard Joseph Gatz, according to Bloomberg News. In that lawsuit Gatz claims that Robinhood’s decision to freeze trading on Blackberry, Nokia, and AMC “has caused irreparable harm” and protected “institutional investment at the detriment of retail customers.”
In light of Robinhood’s restrictions, internet sleuths were able to dig up a March 2016 tweet from the trading company in which they said “Let the people trade.” Seems as if they’re temporarily reneging that declaration…
Let the people trade.
— Robinhood (@RobinhoodApp) March 23, 2016
On Wednesday Big League Politics covered Discord’s ban of their Wall Street Bets server for alleged “hate speech.” Discord claims it has absolutely nothing to do with people on that server beating Wall Street investors at their own game—a claim not many are believing, to say the least.
This stock market saga is already shaping up to be one of the most interesting stories of 2021. Stay tuned to Big League Politics for further updates.