Robinhood is facing nearly 50 lawsuits over GameStop frenzy.

[Zeedox]

Robinhood is facing nearly 50 lawsuits over GameStop frenzy. (Published 2021)

www.nytimes.com

The firm said it is facing at least four potential class-action lawsuits over it disclosures about the fees it receives from other firms.

That source of revenue — called payment for order flow — drew the attention of angry users after Robinhood curbed trading last month in GameStop and other stocks that got caught up in a retail-trading frenzy that briefly sent the video-game retailers shares soaring.

In the regulatory filing, Robinhood disclosed that it is facing at least “46 putative class actions and three individual actions” over the trading restrictions.

 

[Gomez Adams]

Not the least bit surprised. In fact, I'm surprised it took this long to find out about it. I'm also surprised that the FEC hasn't launched investigations into it all.

 

[Hugo Stiglitz]

What they did was fucking criminal. They had no problem at all selling shit tons of what they thought was worthless stock. Once they found out what was happening they locked the shit down to save their own asses.

They should be in prison for that shit.

 

[Grimhogun]

I still don't even understand what happened. Sounds like a bunch of guys were in a craps game and each had his own set of loaded dice and now theyre all pointing fingers at each other for cheating.

 

[Gomez Adams]

That's about the sum of it. Everybody was trying to game the system, but the big issue was that once the little guys got the upper hand, the big guys confiscated everybody's dice and everybody had to play the game using only theirs.