June 19, 2021

Breaking: Robinhood Faces 46 Lawsuits Over GameStop Stock Blockage

2 min read


Robinhood, a brokerage company that uses trading services for conventional stocks as well as the crypto possession is presently dealing with nearly 46 suits for blocking trades of Gamestop (GME) stocks at their rate peak. The firm in a regulatory filing on Friday revealed that it is facing a minimum of “46 putative class actions and three specific actions” over the trading constraints last month. The company in its main filing composed,

As of the date the monetary statements were available to be issued, we have actually become aware of approximately 46 putative class actions and 3 specific actions that have actually been filed against RHM, RHF, and/or RHS in various federal and state courts connecting to Early 2021. Trading Restrictions. The problems normally declare breach of agreement, breach of the indicated covenant of great faith and reasonable dealing, negligence, breach of fiduciary duty, and other typical law claims.

The company had actually claimed the halting of GME stocks was done to protect traders from an unpredictable market, however lots of implicated the firm of being brief on liquidity. Lots of others likewise believe Robinhood blocked GME trading at the behest of investors in the company who also held a substantial position in Melvin Capital, the hedge fund that had actually purchased most of the short positions versus GME.

Robinhood is Planning on Going Public This March

Right after declaring that the company was facing no liquidity crisis owing to the GameStop frenzy, the company went onto raise over a billion dollars in a personal funding round. In the middle of several lawsuits and personal fundraising, the company is now preparing to hold its IPO as early as March.

The mobile trading and brokerage firm also faced the ire of the crypto world mainly since of its unethical means to block GME stock trade and later on since it also halted Dogecoin trading on its platform.

The post Breaking: Robinhood Faces 46 Lawsuits Over GameStop Stock Blockage appeared initially on Coingape.