Stock Trading Platforms Robinhood Claims must be facedIn last year's 'memetic stock' rally, a US judge ruled.
Judge Cecilia Altonaga of the U.S. District Court in Miami said GameStop, AMC Entertainment Holdings and other investors in her seven shares said the limit would artificially reduce the value of their shares. It said in the ruling that it could proceed with a class action lawsuit claiming it had increased. supply.
The lawsuit follows a temporary ban oncustomers from purchasing certain popular stocks, includingGameStop and AMCin January 2021,It is one of several lawsuits filed against retail trading platforms.
Shares of these companies soared to extreme highs thanks to a social media-inspired rally that ultimately affected Robinhood and others It restricted securities trading, infuriated individual investors, and undermined market confidence. Volatility caused huge losses for hedge funds betting on memetic stocks.
Lawyers for Robinhood did not immediately respond to requests for comment.
