The consumer trading app has drawn significant ire for their recent actions.
While the big GameStop stock surge has long since died down, the event has had no shortage of impacts in the public consciousness. We could go into a whole treatise about the stock market itself from what we learned from the whole ordeal, but at the moment, there’s one aspect that people are a little more focused on: Robinhood. During the big GameStop surge, Robinhood halted purchases of GME stock on its service, while conspicuously leaving the option to sell still available. This action has drawn intense scrutiny from users claiming that Robinhood deliberately kneecapped itself to hinder them at Wall Street’s behest.
As a result of this criticism, multiple Robinhood users have arranged for a class-action lawsuit against the service, courtesy of The Ferraro Law Firm.
“Robinhood knew its actions would result in the restricted stock prices to plummet,” the lawsuit reads. “By doing so, they were looking out for Wall Street hedge funds at the expense of the individuals who were customers of Robinhood.”
“Robinhood is restricting securities such as GME [GameStop] from its platform in order to slow growth and help benefit individuals and institutions who are not Robinhood customers but are Robinhood large institutional investors or potential investors,” the lawsuit says.
Plaintiffs are being represented by two attorneys from The Ferraro Law Firm, Jeff Kwatinetz and Sean Burstyn.
Robinhood faces class-action lawsuit over trading platform that’s ‘designed to go down’ – Fox Business https://t.co/z76KM875OG
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“[Robinhood] came on with this whole ‘Let’s democratize and give access to millennials and younger people,’” Kwatinetz told Fox News. “They didn’t take the responsibilities when it comes to something like that.”
According to Kwatinetz, if this lawsuit is successful, Robinhood could be forced to pay billions in damages to users. “We still have a long way to go to figure out exactly, you know, how many people were affected,” he said.