BREAKING: Class action lawsuit against Robinhood in New York

After a major uproar in the Wall Street market on Tuesday and Wednesday this week, resulting in billions of dollars in losses for some Wall Street companies engaged in the practice of short selling of stocks, and some short-term gains for amateur investors in a person From 2 million people plus forum on Reddit, a class action lawsuit has been filed against trading app Robinhood.

Robinhood stopped trading for the affected stocks rather than allowing free trade to continue.

The lawsuit, filed in the Southern District of New York, alleges that Robinhood, which stopped trading the affected stock of GameStop, AMC Entertainment and others targeted by r / WallStreetBets, “ knowingly, intentionally and knowingly ” the stock GME ‘ [GameStop] of its trading platform amid an unprecedented surge in stocks, depriving retail investors of the ability to invest in the open market and manipulate the open market. “

The allegations in the suit continue:

Robinhood is an online brokerage firm. Its clients trade securities through the company’s website using a web application (or “app”). Robinhood allows clients to buy and sell securities, including forward contracts.

Robinhood has seen significant growth as a relatively new online brokerage firm. In 2019, Robinhood raised $ 323 million in funding at a value of $ 7.6 billion. The company sells itself primarily to younger investors and claims more than 10 million users of his trading app.

On or about March 23, 2016, Robinhood’s official Twitter account stated: ‘Let the people trade. ‘ Since then they have ignored their mantra and blocked access for millions of clients to trade certain securities.

On or about January 11, 2021, shares of GameStop Corp. (“GME”) began to rise.

At the time, Robinhood allowed private investors to trade GME on the open market.

On or around January 27, 2021, Robinhood, to slow GME’s growth and deprive their customers of the ability to abruptly, deliberately, deliberately and knowingly remove their service from their app. This means retail investors could no longer buy or even search for GME on Robinhood’s app.

“Based on information and conviction, Robinhood’s actions were deliberately and deliberately done to manipulate the market for the benefit of people and financial intuitions who were not Robinhood customers.

“Since removing the stock from their app, GME prices have gone up, denying investors potential gains.

In addition, in the event that GME fails, Robinhood has withheld investors from ‘shorting’ GME in the hope that the price will drop.

In short, Robinhood has completely blocked retailer investors from purchasing GME for no legitimate reason, denying retailer investors the benefits of Robinhood’s services.

The Financial Industry Regulatory Authority (“FINRA”), which regulates brokers such as Robinhood, subscribes to Rule 5310 regarding “Best Execution and Interpositioning.” Rule 5310.01 requires that Robinhood “must make every effort to promptly and fully execute a negotiable customer order it receives. By not responding at all to clients’ timely placement of trades – and by outright blocking clients from trading a security – Robinhood has, among other things, violated these obligations and inflicted significant losses on its clients, solely due to its own negligence and failure to maintain an adequate infrastructure.

Robinhood continues to randomly extract other securities from its app for no legitimate reason.

Based on information and belief, Robinhood is pulling securities such as GME from its platform to slow growth and help benefit individuals and institutions that not Robinhood clients but Robinhood are large institutional investors or potential investors. “