The family of a 20-year-old college student who took his own life after believing he had suffered large trading losses on Robinhood Markets Inc., filed a lawsuit against the company, saying his reckless behavior promptly and after death led to the death of the company. one of his victims. “
The father, mother and sister of Alex Kearns, a Robinhood user and a student at the University of Nebraska-Lincoln, said in a complaint filed in California state court on Monday that Robinhood contributed to his death through “ misleading communication about his investments and “virtually nonexistent” customer service. They are seeking unspecified damages.
“We were devastated by the death of Alex Kearns,” a Robinhood spokesperson said in an email. “We remain committed to making Robinhood a place to learn and invest responsibly.”
Robinhood was one of the biggest beneficiaries of the retail boom during pandemic lockdowns, which reached new heights last month with the GameStop Corp. mania. and other stocks favored by Reddit’s WallStreetBets forum. The company amassed about 20 million users late last year, and executives have told investors Robinhood is planning an initial public offering in the first half of 2021, The Wall Street Journal previously reported.
But in the midst of Robinhood’s growth, the company sometimes failed to prioritize things like customer service, communications, and risk management.