Robinhood Beats Consolidated Suit Over GameStop Trade Cutoff (2024)

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Robinhood Beats Consolidated Suit Over GameStop Trade Cutoff? ›

Robinhood Beats Consolidated Suit Over GameStop Trade Cutoff

Affirms 'Meme Stock' Suit Dismissal. Financial trading platform Robinhood Markets Inc. prevailed in a suit alleging it agreed to freeze trades of highly shorted GameStop stock options after the 11th Circuit affirmed a lower court's dismissal of the case.

The plaintiffs claimed they had lost money when Robinhood stopped investors from buying GameStop, AMC Entertainment and several other stocks. A federal judge dismissed the lawsuit. The plaintiffs appealed the order.

The parties in the Lawsuit have agreed to resolve the Lawsuit on a class action basis. As described further below, Robinhood has paid $9 million to fully and finally resolve the claims of the Settlement Class.

In an interview with Elon Musk over the weekend, Robinhood's CEO instead cited a sudden decision by its clearing house to up the broker's capital requirements – something which can happen where there's risky over-concentration in certain volatile stocks.

The normie GameStop investors who recognized the opportunity for a short squeeze were right — the stock was over-shorted, they saw their chance, and they seized it. The episode took out Melvin Capital — even after getting extra money injected, the hedge fund eventually went under.

He made a whopping $79 million on paper on Monday — a single trading day. Learn more about Gill's meteoric rise here: cnb.

Yes, you can withdraw money from Robinhood. There are 2 ways to withdraw cash from Robinhood: By debit card or by bank account.

Robinhood is a member of the Securities Investor Protection Corp. (SIPC). This means that any loss of an investor's securities (e.g., stocks and bonds) and cash held by Robinhood is protected up to $500,000 in the event the firm fails or goes out of business. This includes up to $250,000 protection for cash holdings.

If you are a Robinhood customer and have been affected by a suspected security failure, call our office at (305) 402-9050 or email [email protected] to discuss joining a class-action lawsuit based on the November 2021 data breach.

Is Robinhood safe after GameStop? ›

The Bottom Line: Yes, Robinhood is safe and legit, but it has had a number of issues… Robinhood became the center of controversy on January 28, 2021 after preventing users from buying stock in several companies, including Gamestop, AMC and Nokia.

By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments.

The investors, led by plaintiff Blue Laine-Beveridge, had accused Robinhood of manipulating the market and causing them to lose money by limiting their ability to buy shares of GameStop, AMC, and other meme stocks that had soared in popularity among retail traders.

NEW YORK, July 1 (Reuters) - Investors in GameStop (GME. N) , opens new tab have for now withdrawn their lawsuit accusing Keith Gill, who is known as "Roaring Kitty" and helped spur the meme stock mania of 2021, of defrauding them through a "pump-and-dump" scheme for the videogame retailer.

Gill “quietly sold and/or exercised (i.e., dumped) all 120,000 of his GameStop call options for a large profit, seemingly to increase his own stake in GameStop stock by over 4 million shares,” Radev said in the suit. GameStop shares have since fallen, though they're still higher than they were before Gill's posts.

through an elaborate scheme in which they boosted the prices of highly illiquid stocks using money they took from the platform. Over the course of four years, prosecutors say, the four men orchestrated hundreds of thefts of $5,000 at a time from Robinhood through a scheme known as “free riding.”