BREAKING: A class action lawsuit was filed against Robinhood in New York

After a major riot in the Wall Street market on Tuesday and Wednesday of this week, that translates into billions of dollars in losses for some Wall Street companies engaged in the practice of selling shares in short-term, and some short-term gains for amateur investors in 2 million people in addition to the Reddit forum, a class action lawsuit has been filed against the Robinhood trading app.

Robinhood stopped trading the affected shares instead of allowing it to continue free trading.

Filed in the Southern District of New York, the lawsuit alleges that Robinhood, which stopped trading in the affected shares of GameStop, AMC Entertainment and other targets of r / WallStreetBets, “deliberately, intentionally and knowingly removed GME from the actions’ [GameStop] from its trading platform in the midst of an unprecedented rise in values, it deprived retail investors of the ability to invest in open branding and manipulate the open market. ”

The lawsuits continue:

“Robinhood is an online brokerage firm. Its clients conduct securities transactions through the company’s website through a web-based application (or” application “). Robinhood allows clients to buy and sell securities, including securities. futures contracts.

“Robinhood has experienced significant growth as a relatively new online brokerage firm. In 2019, Robinhood raised $ 323 million in valuation at $ 7.6 billion. The firm is primarily marketed to younger investors and claims more of 10 million users of its commercial application.

“On or about March 23, 2016, Robinhood’s official Twitter account said:Let people trade. ” Since then, they have ignored their mantra and blocked access to millions of customers to trade particular securities.

“On or about January 11, 2021, the shares of GameStop Corp. (“ GME ”) began to rise.

“At the time, Robinhood allowed retail investors to trade GME on the open market.

“On January 27, 2021 approximately, Robinhood, to curb the growth of GME and deprived its customers of the possibility of using its service, abruptly, intentionally, intentionally and consciously, removed GME from its application That is, retail investors could not buy or even look for GME in the Robinhood app.

“According to information and belief, Robinhood’s actions were done intentionally and consciously to manipulate the market for the benefit of people and financial intuitions who were not Robinhood customers.

“Since they removed the shares from their app, GME prices have risen and deprived investors of potential gains.

“Also, in the event that GME falls, Robinhood has deprived investors of‘ shortening ’GME in hopes of lowering the price.

“In short, Robinhood has completely blocked retail investors from buying GME for no legitimate reason, thus depriving retail investors of the benefits of Robinhood services.

“The Financial Industry Regulatory Authority (” FINRA “), which governs brokers such as Robinhood, advocates Rule 5310 on” Better Execution and Filing. Rule 5310.01 requires Robinhood. “you must make every effort to execute a marketable customer order that you receive quickly and completelyBy failing to respond at all to timely customer transactions — and by directly blocking customers from negotiating security — Robinhood has breached these obligations, among other things, and caused its customers substantial losses due solely to their own negligence and the failure to maintain adequate infrastructure.

“Robinhood continues to randomly extract other values ​​from its application for no legitimate reason.

“According to information and belief, Robinhood removes from its platform titles such as GME to slow growth and help benefit the people and institutions that are no Robinhood customers are large institutional investors or potential Robinhood investors. “