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They are also facing a class action lawsuit: https://www.pcmag.com/news/robinhood-faces-class-action-lawsuit-for-blocking-gamestop-stock-buys https://www.pcmag

by rmason 6y ago

They are also facing a class action lawsuit: https://www.pcmag.com/news/robinhood-faces-class-action-lawsuit-for-blocking-gamestop-stock-buys https://www.pcmag.com/news/robinhood-faces-class-action-laws... Be aware of the risks upfront when doing business with a company when you're not the real customer.

tootie 6y ago
That will likely get tossed pretty quickly. There's no evidence of wrongdoing.
- colinmhayes 6y ago
  The stock went down 40% after the retail brokers stopped letting GME be bought. It also happened to AMC. Is that not evidence?
  - aaomidi 6y ago
    And Nokia.
  - tidepod12 6y ago
    Evidence of what? Of wrongdoing? No.
- 650REDHAIR 6y ago
  Bold claim. There is a relationship between Citadel and RH and a relationship between Melvin and Citadel. I want an investigation.
  - itsnot2020 6y ago
    Citadel Securities LLC (market maker) has a relationship with Robinhood, Citadel LLC (hedge fund) the one with the short doesn't. Read into this what you want.
    - 650REDHAIR 6y ago
      Who owns both Citadel Securities LLC and Citadel LLC? *Edit. Rhetorical question. It's Republican donor Ken Griffin.
- Kranar 6y ago
  A judge can not dismiss a civil suit due to lack of evidence until after the discovery phase since until that phase no evidence is even produced or evaluated. Prior to discovery all that a judge can evaluate are the statement of claims with damages and procedural matters such as standing, jurisdiction, proper service, etc... There are claims of wrongdoing alleged in the lawsuit, notably that Robinhood has two classes of customers, its users who buy and sell securities using its app, and financial institutions who pay Robinhood for information about those users. The allegation in the lawsuit is that recent trading on GME by Robinhood app users resulted in a conflict on interest towards Robinhood's institutional clients, and that Robinhood halted trading in GME and other stocks to benefit its institutional customers at the expense of its app users. Given that Robinhood has a fiduciary duty to its app users and no such duty to its institutional clients, that conflict of interest was a breach of its duty and Robinhood must be liable for any losses arising as a consequence of that breach. That is a claim of wrongdoing. In almost any non-trivial lawsuit, evidence can only be gathered after claims of wrongdoing have been made, at which point both parties are compelled to disclose vast amounts of information that could be pertinent to determine what damage has been caused.
  - anticensor 6y ago
    Does US lack "no expansion of defence after plea" rule in civil lawsuits?
rory 6y ago
Do retail investors really have a choice at this point? When I opened my Schwab account there were fees for each trade, but now it's free like most (all?) others. The only broker I know of that doesn't sell order flow is Interactive Brokers, and they restricted $GSE anyway (to "protect themselves").

by rmason 6y ago

tootie 6y ago

That will likely get tossed pretty quickly. There's no evidence of wrongdoing.

colinmhayes 6y ago
The stock went down 40% after the retail brokers stopped letting GME be bought. It also happened to AMC. Is that not evidence?
- aaomidi 6y ago
  And Nokia.
- tidepod12 6y ago
  Evidence of what? Of wrongdoing? No.
650REDHAIR 6y ago
Bold claim. There is a relationship between Citadel and RH and a relationship between Melvin and Citadel. I want an investigation.
- itsnot2020 6y ago
  Citadel Securities LLC (market maker) has a relationship with Robinhood, Citadel LLC (hedge fund) the one with the short doesn't. Read into this what you want.
  - 650REDHAIR 6y ago
    Who owns both Citadel Securities LLC and Citadel LLC? *Edit. Rhetorical question. It's Republican donor Ken Griffin.
Kranar 6y ago
A judge can not dismiss a civil suit due to lack of evidence until after the discovery phase since until that phase no evidence is even produced or evaluated. Prior to discovery all that a judge can evaluate are the statement of claims with damages and procedural matters such as standing, jurisdiction, proper service, etc... There are claims of wrongdoing alleged in the lawsuit, notably that Robinhood has two classes of customers, its users who buy and sell securities using its app, and financial institutions who pay Robinhood for information about those users. The allegation in the lawsuit is that recent trading on GME by Robinhood app users resulted in a conflict on interest towards Robinhood's institutional clients, and that Robinhood halted trading in GME and other stocks to benefit its institutional customers at the expense of its app users. Given that Robinhood has a fiduciary duty to its app users and no such duty to its institutional clients, that conflict of interest was a breach of its duty and Robinhood must be liable for any losses arising as a consequence of that breach. That is a claim of wrongdoing. In almost any non-trivial lawsuit, evidence can only be gathered after claims of wrongdoing have been made, at which point both parties are compelled to disclose vast amounts of information that could be pertinent to determine what damage has been caused.
- anticensor 6y ago
  Does US lack "no expansion of defence after plea" rule in civil lawsuits?

rory 6y ago

Do retail investors really have a choice at this point? When I opened my Schwab account there were fees for each trade, but now it's free like most (all?) others. The only broker I know of that doesn't sell order flow is Interactive Brokers, and they restricted $GSE anyway (to "protect themselves").