Breaking: Robinhood Faces 46 Lawsuits Over GameStop Stock Blockage


Robinhood, a brokerage firm that offers trading services for traditional stocks as well as the crypto asset is currently facing nearly 46 lawsuits for blocking trades of Gamestop (GME) stocks at their price peak.  The firm in a regulatory filing on Friday revealed that it is facing at least “46 putative class actions and three individual actions” over the trading restrictions last month. The firm in its official filing wrote,


As of the date the financial statements were available to be issued, we have become aware of approximately 46 putative class actions and three individual actions that have been filed against RHM, RHF, and/or RHS in various federal and state courts relating to Early 2021. Trading Restrictions. The complaints generally allege breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, breach of fiduciary duty, and other common law claims.

The firm had claimed the halting of GME stocks was done to protect traders from a volatile market, however many accused the firm of being short on liquidity. Many others also believe Robinhood blocked GME trading at the behest of investors in the firm who also held a significant position in Melvin Capital, the hedge fund that had bought most of the short positions against GME.

Robinhood is Planning on Going Public This March

Right after claiming that the firm was facing no liquidity crisis owing to the GameStop frenzy, the firm went onto raise over a billion dollars in a private funding round. Amidst several lawsuits and private fundraising, the firm is now planning to hold its IPO as early as March.

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

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Recent Posts

Ethereum Price hits ATH, ETH/BTC Pair Reach 3-Year High

Ether (ETH) recorded a new ATH today reaching $2,593 after surging nearly 10% for the…

9 hours ago

HORD Announces Quadruple Token Sale Via IEO and IDO

Tortola, BVI, 22nd April, 2021, Hord, the provider of dynamic ETFs via decentralized smart contracts,…

10 hours ago

Deutsche Boerse Won’t Delist Coinbase Share After Exchange Offers Reference Code

Deutsche Boerse has decided against the delisting of Coinbase Inc shares from its Xetra and…

12 hours ago

Turkish Agency Opens Investigation Against Crypto Exchage Thodex Over Alleged $2B Fraud

Thodex, a popular crypto exchange in Turkey is currently under investigation for alleged exit fraud…

15 hours ago

Binance May Face Investigation by European Regulators for Offering Stock Tokens

Binance crypto exchange recently started offering fractional tokenized shares of Tesla and Coinbase allowing customers…

16 hours ago

Elon Musk And Jack Dorsey Agree Bitcoin Is Key to Renewable Energy Adoption

Jack Dorsey led Square Inc along with Ark Investment released a White paper on Bitcoin's…

18 hours ago