Robinhood Restricted Stock Purchases – Lockout Leads to Lawsuits by Customers
On Thursday, January 28th, 2021, the online brokerage Robinhood restricted its customers from purchasing certain stocks on its platform. In an interview with CNBC, Robinhood CEO Vlad Tenev said the decision to halt trading of GameStop, AMC and other stocks was “difficult,” but the company did so “to protect the firm and protect our customers.”
However, Robinhood customers are crying foul. In fact, numerous Robinhood customers filed class-action lawsuits against the company after it barred traders from buying shares in stocks promoted by WallStreetBets, a popular Reddit group for investors.
Robinhood customers may be leery of Tenev’s suggestion that the decision to stop purchase in those stocks was in best interest of its customers, because it recently paid $65M to the SEC for allegations that it failed to live up to its obligations to its customers by fulfilling customer orders in way that benefited its own financial interests over its customers.
The SEC investigation lead to a number of class action lawsuits being filed with similar allegations.
If you were affected by Robinhood’s recent actions, you may be able to pursue an individual claim against the company.
The attorneys at Davis & Norris are currently pursuing claims on behalf of Robinhood customers. Our cases are not class actions, but individual cases seeking compensation on the facts of your potential claim. Frequently, our firm is able to use ADR forums to expedite recovery for our clients much faster than litigation.
Answer the following questions and one of our attorneys will start evaluating your claim.
As a reminder, there is never out of pocket expenses for our attorneys pursuing your claims. Our firm does not make any money unless we recover for you.