Angry internet users025 Archivesfiled over 30 class-action lawsuits against Robinhood for restricting stock buys on the app.
The lawsuits have been piling up in the PACER court database days after Robinhood stopped stock buys for GameStop and seven other companies. On Tuesday, PCMag counted 34 civil complaints against the company.
A Massachusetts-based man named Brendon Nelson was the first to file a class-action lawsuit against Robinhood, demanding it pay up in damages for depriving users of the chance to buy GameStop stock. Since then, dozens of users across the U.S. have filed similar complaints.
Some of the lawsuits point out Robinhood users could only hold or sell the affected stocks as the share price for GameStop began to fall, benefiting short-sellers. “This is what the Hedge Funds wanted. When everyone is only selling, the price cannot go up because no one can buy the shares,” reads a complaint filed in Florida.
Another complaint filed in California names all the major stock trading platforms, claiming they engaged in a conspiracy and violated antitrust laws by preventing retail investors from buying the stocks. “In other words, Robinhood (and Apex Clearing Corporation) stole from the poor to give to the rich,” writes a separate class-action lawsuit filed in San Francisco.
However, the lawsuits may not have much of a chance in court. Robinhood’s customer agreement notes it has the power to stop stock buys, without any prior notice.
The company also claims it had no choice but to restrict the stock buys due to it running out of cash to cover the transactions. “The amount required by clearinghouses to cover the settlement period of some securities rose tremendously this week. How much? To put it in perspective, this week alone, our clearinghouse-mandated deposit requirements related to equities increased ten-fold,” the company wrote in a blog post over the weekend.
“We did this because the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities,” it added.
The company is now allowing users to buy as much as 20 shares in GameStop. Nevertheless, Robinhood’s reputation may have been irrevocably damaged over restricting the stock buys.
The company’s CEO is expected to testify before Congress on Feb. 18. In the meantime, the share price for GameStop plummeted Tuesday morning from $227 to $93.
How to unblock Xnxx for free
Best water flosser deal: Save $30 on Waterpik Cordless Advanced
Max is changing its name back to HBO Max
NYT Connections Sports Edition hints and answers for May 14: Tips to solve Connections #233
Bomb Envy
NASA rover captures an aurora from Mars surface for the first time
Save 55% on the Anker 525 charging station
Best security camera deal: Get a Google Nest Security Cam for its lowest price yet
Researchers map the koala genome in the name of saving the species
Best headphones deal: Take 37% off the Philips H8506 headphones
Amazon Pet Day: All the best deals
Best Apple deal: Save $69.01 on Apple AirPods Max (USB
Dame removes 'Trump tariff surcharge' amid trade deal
Best Beats deal: Save $50 on Beats Pill
This is the fattest of the extremely fat bears
Best power station deal: Save $330 on Jackery Solar Generator Explorer 500
Portable projector deal: Save $300 on the Hisense C2 laser projector
Best coffee machine deal: Save $60 on the Nespresso Vertuo Plus
Shop the iPad Air and iPad 11th generation for their lowest
Philips now allows customers to 3D print replacement parts
What We’re Loving: ABCs, Akrasia, Antiquity by The Paris Review'Quordle' today: See each 'Quordle' answer and hints for July 12Tolstoy Goes Digital, and Other News by Sadie SteinUnbroken Crayon by Alia AkkamLessons from an ElevenThat historic ThanosMr. Paradise by Jonathan Segura'Quordle' today: See each 'Quordle' answer and hints for July 10Frederick Seidel’s “Widening Income Inequality” by Hailey GatesNew Salinger, and Other News by Sadie SteinSecret Book Landscapes, and Other News by Sadie SteinThis Is Just to Say by Sadie SteinFacebook gives middle finger to Australia as Google strikes multiThe Art of Our Necessities: A Cronut Story by Nikkitha BakshaniEmmy nominations 2023: How and when to watchThe best conspiracy theory podcasts about dangerous misinformationReader’s Block by Diane MehtaNothing Phone 2 gets U.S. availability date, priceEmmy nominations 2023: How and when to watchHow to sign up for Amazon Prime ahead of Prime Day 2023 8 thoughts we have while on our periods at work Writer runs back into burning home to rescue his laptop AirPods to get 3 exciting new features The Chainsmokers bro would like everyone to stop calling him a bro Singapore gets third Paralympic gold in its history thanks to swimming champ Yip Pin Xiu You won't have to wait much longer to replace your recalled Note7 Pressure cooker device removed from NYC street after robot inspects it The guy who dropped an iPhone on live TV isn't buying the new iPhone just yet Trump proves Your Note7 has been recalled. What should you do now? Your dreams of pooping in a solid gold toilet are now a reality The 5 'One Night in Karazhan' cards that completely change 'Hearthstone' play This is what a comet disintegrating in space looks like Apple is releasing a beefy Smart Battery Case for iPhone 7 Dyson Supersonic blows away the competition, but it comes with a steep price Samsung hit with lawsuit over exploding Galaxy Note7, report says FAA issues new guidance to airlines on recalled Samsung Galaxy Note7 Los Angeles police use a robot to take away a murder suspect's gun Hipsters queue for hours to order a drink from shot Chicago officer indicted three years after firing on group of black teens
2.5886s , 10109.265625 kb
Copyright © 2025 Powered by 【2025 Archives】,Feast Information Network