GameStop stock buyers file class-action lawsuit against Robinhood - weicourstered

GameStop stock buyers file class-action causa against Robinhood

UPDATE (01/29/2021): A class-action lawsuit has now been filed against Robinhood for constrictive the sales agreement of popular stock such atomic number 3 GameStop (GME), AMC, BlackBerry (BB), and more.

The lawsuit has been filed in the Southern Territorial dominion of New York by Brendon Lord Nelson, a user of the app from Massachusetts. Nelson claims that Robinhood "abandoned its customers altogether," inculpatory the app of "pulling securities equivalent GME from its political program in order to slow growth and helper benefit individuals and institutions who are not Robinhood customers just are Robinhood extensive institutional investors or potency investors."

The scandal surrounding Robinhood and other trading apps has seen several politicians and business figures wading into the debate across the aisle, including AOC, Ted Cruz, and Elon Musk.

ORIGINAL STORY (01/28/2021): Robinhoodis nether fervency from users who throw been unable to buy or deal stock in GameStop (GME) nowadays, with the trading app being wide criticized for restricting purchases OR sales due to "recent volatility" in the market. As a result, Reddit users from r/WallStreetBets are career for a class-action lawsuit against the app, along with bombarding its App Storehouse and Google Gaming Store pages with one-star reviews.

GME stockholders song for a Robinhood 'class-legal action case'

As GameStop trite continued its momentous development when the commercialise opened this morning, Robinhood blocked trades of GME, AMC, and others that had been targeted by Reddit users. As such, users were ineffective to trade their broth, thus causation downwardly fluctuations in the food market that otherwise may not have been there.

Robinhood proclaimed its decision to stop trading certain bloodline in a blog post. "We endlessly monitor the markets and make changes where necessary," a statement from the app reads. "In light of past volatility, we are confining minutes for certain securities to posture closing only, including $AAL, $AMC, $BB, $BBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG. We likewise raised margin requirements for certain securities."

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When Robinhood users found that they were unable to trade their shopworn connected the app, many took to r/WallStreetBets and its related Dissension waiter to accuse the app of "market use." The top-rated put up happening the r/WallStreetBets subreddit reads: "Robinhood has successful peck of money off selling our trades to the sideste funds to cost capable to pay out a little for causation people to loose [sic] money now." It has but under 100,000 upvotes at the time of this writing.

After the restriction of trading and another volatile ingenuous to the market, GME blood declined from over $400 to $126 at the time of this writing. Retail traders took to the reviews pages of Robinhood and other trading apps to vent their frustrations, bombarding them with one-star reviews and further accusations of working in the party favor of the hedge funds that were beingness targeted.

While r/WallStreetBets led the charge with this increase in retail trading, the community of interests has non been without its issues as a result of the increased scrutiny placed happening it. Its Discord server was banned yesterday, before its Reddit moderators were forced to throw the subreddit privy. Aside from the criticisms being leveled at Robinhood now, the app besides struggled to distribute with the sudden necessitate in trading, with it periodically passing offline due to increased user activity.