BREAKING: A class action lawsuit filed against Robinhood in New York

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

Robinhood has stopped trading for the affected shares instead of allowing free trading to continue.

Filed in the Southern District of New York, the lawsuit alleges that Robinhood, which stopped trading for shares affected by GameStop, AMC Entertainment and others that were targeted by r / WallStreetBets, “intentionally, intentionally and successfully removed GME stock science ” [GameStop] from its trading platform, in the midst of an unprecedented increase in values, thus depriving retail investors of the ability to invest in the open brand and manipulate the open market. “

The charges in the lawsuit continue:

“Robinhood is an online brokerage firm. Its customers carry out transactions with securities through the company’s website, using a web application (or “application”). Robinhood allows customers to buy and sell securities, including futures.

“Robinhood has seen significant growth as a relatively new online brokerage firm. In 2019, Robinhood raised $ 323 million in funding at a valuation of $ 7.6 billion. The company sells primarily to younger investors and requires more than 10 million users of its trading application.

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

“On or about January 11, 2021, the stocks in GameStop Corp. (“GME”) began to grow.

“At the time, Robinhood was allowing retail investors to trade GME on the open market.

“On or around January 27, 2021, Robinhood, in order to slow the growth of GME and deprive their customers of the ability to use their service, abruptly, intentionally, intentionally and knowingly removed GME from their application. buy more or even look for GME in the Robinhood app.

“From the information and beliefs, Robinhood’s actions were done intentionally and knowingly to manipulate the market for the benefit of people and financial intuitions who were not Robinhood customers.

“Since they removed the shares from their application, GME prices have risen, depriving investors of potential gains.

“In addition, if GME falls, Robinhood deprives investors of GME ‘short-circuiting’ in the hope that the price will fall.

“In conclusion, Robinhood has completely blocked retail investors from buying GME for no legitimate reason, depriving retail investors of the benefits of Robinhood services.

The Financial Industry Regulatory Authority (“FINRA”), which governs brokers such as Robinhood, supports Rule 5310 on “Best Enforcement and Interposition”. Rule 5310.01 requires that Robinhood “he must make every effort to execute a marketable order which he receives promptly and fully. “By failing to respond to customers’ timely trading at all – and directly blocking customers from trading a guarantee – Robinhood breached these obligations, among other things, and caused its customers substantial losses due solely to their own negligence and failure to maintain adequate infrastructure.

“Robinhood continues to randomly extract other titles from its application for no legitimate reason.

“According to information and beliefs, Robinhood is removing titles like GME from its platform to slow growth and help people and institutions that benefit not Robinhood customers, however, are large institutional investors or potential investors in Robinhood. “