3 ms·
There is a case because of the reasons behind it. Say an auction house auctions off a picture. But right during the auction they announce, point to their TOS, t
by kosh2 6y ago
There is a case because of the reasons behind it. Say an auction house auctions off a picture. But right during the auction they announce, point to their TOS, that out of all the present bidders, only 1 person is allowed to bid. This one person then buys the picture at a fraction of the price that would have been expected if all people were allowed to bid.
On top of that it turns out that the one person bidding is part of a museum that has a significant stake in the auction house.
Of course comparisons like that break quickly. But it is very obvious that market-makers (or other players behind the scenes) were extremly worried about the coming squeeze and did that to stop the stock from going higher.
- jcranmer 6y agoFrom what I've read in the complaint, the reason they're alleging is "no reason," although one claim does list "market manipulation" as a reason with no other facts to support that (which strikes me as something to be stricken as a conclusatory allegation, not a factual allegation, but I'm not a lawyer here). Especially for something as complicated as security law, I'd expect to see an entire section on market manipulation laying out what the precedent says they need to allege to substantiate their claims and then detailing enough facts (or beliefs to be made good on in discovery) to make that claim credible. Without it, the complaint comes across less as "Robinhood clearly broke the law" and more as "I'm whining because I don't like the contract I signed with Robinhood."
- willyg123 6y agoThere isn't a case because every user signed an arbitration agreement that prevents a class action from moving forward[1] [1]https://cdn.robinhood.com/assets/robinhood/legal/Customer%20Agreement.pdf https://cdn.robinhood.com/assets/robinhood/legal/Customer%20...
- qaq 6y agoand I guess we will see in court how enforceable that is in this case