Robinhood to face class action lawsuit over meme stock debacle: report

It's been over a year, but investors are still making allegations against Robinhood following the January 2021 controversy around trading of GameStop and AMC actions. New

Cryptocurrency and stock trading platform Robinhood is reportedly facing market manipulation allegations in a class-action lawsuit brought by investors in "meme stocks" of nine different companies during of a gathering in January 2021.

According to a Thursday report from Reuters, U.S. District Court Judge Cecilia Altonaga of the Southern District of Florida ruled that investors in GameStop, AMC and seven other unnamed stocks — which could include Nokia and BlackBerry - could take legal action alleging Robinhood artificially increased the supply of inventory. In January 2021, the price of several assets, including the meme token Dogecoin (DOGE), hit all-time highs after Redditors on r/Wallstreetbets increased interest in certain stocks and cryptocurrencies.

Robinhood suspended - but later resumed - purchases of GME and other shares following the exponential increase in assets, placing the trading platform in the midst of a tussle among retail investors and large hedge funds selling stocks short. Thousands of users have left one-star reviews for Robinhood's app on the Google Play Store, the platform has suspended plans for an initial public offering in the US, and individuals have filed multiple class action lawsuits. alleging that Robinhood bowed to the interests of those involved. hedge funds, given its ties to Citadel and Melvin Capital.

Today is the day Robinhood stole from the poor to give to the rich. $GME $KOS

— Bet Brui...