Are you looking into Robinhood lawsuits? The big players have all the power when it comes to stock trading.

The small investors who realized a massive rate of return on their GameStop investment against the large Wall Street short-sellers have been unable to sell their investments on one day and were unable to buy the next day.

People need to either start their own lawsuits or consider trying to join a class-action lawsuit. Keep in mind that if you join a class action, it could be years before you get your money.

If you hire a lawyer to start a small claims lawsuit (if you invested less than $35,000) you might be able to get your money in a matter of months.

Robinhood reportedly removed the GameStop stock (“GME”) from its trading platform after the stock increased from $39.36 on January 19, 2021, to $347.51 six days later.

The stock has since come crashing down, meaning that those that traded on the Robinhood app either didn’t get to realize their return or lost a lot of money.

Robinhood Lawsuits

This is the reason that the courts exist. When there is an unfair wrong that is done to consumers or investors, a judge is there to make a fair ruling that protects the interests of society.

Small investors have lost their ability to participate in the open market. That shouldn’t happen in Western democratic countries.

It is likely that a lawyer you speak to will suggest that Robinhood participated in stock manipulation, which could also be considered a criminal offence. You can’t sue someone for a criminal offence, but you can sue for damages and the money you are owed.

On January 28, 2021, people were able to sell their stocks in Robinhood but were not able to buy anymore. This is likely the reason that the stock price has come crashing down from $347.51 on the 27th to $193.60 on January 28th.

As of January 29, 2021, the stop is back up, probably because people are having a hard time selling the stock. It’s clear that a lot of people will make and lose money on GameStop.

Online Trading Platform Lawsuits

It will be interesting to see which stock Reddit users get involved with next. I can’t wait to see how Wall Street will try to interfere with Reddit’s ability to make stock purchases and sales on the open market.

It is obvious that some wrong has been done. Do not feel afraid to speak to a law firm. Someone needs to pay the price, I just hope it won’t be you. You might be able to get your legal costs reimbursed if you win.

Is anyone using Robinhood?

In the whirlwind world of finance, the Robinhood trading app stands like a sprightly hare in a field of old, lumbering bulls and bears. Despite its speedy rise to prominence, Robinhood’s path hasn’t been as smooth as a river stone. Legal storms, akin to unpredictable summer squalls, have disrupted the app’s journey.

Robinhood, which initially promised to democratize investing, now faces an avalanche of legal challenges. The most significant of these suits came in the wake of the GameStop stock surge of early 2021.

Many traders who tried to ride this Wall Street wave found themselves shipwrecked when Robinhood abruptly halted buying GameStop shares.

Exploring Legal Actions

Enraged traders, feeling like riders jolted off a suddenly-stopped carousel, took legal action. The app, they claimed, acted as a killjoy, prematurely ending the financial funfair.

As of my knowledge cutoff in September 2021, multiple class-action lawsuits had been filed. Each one painted Robinhood as a puppet master, unfairly yanking the strings of the market.

Underpinning these accusations were solid numbers. In January 2021 alone, GameStop’s stock had rocketed from less than $20 to almost $350. This rollercoaster ride was cut short when Robinhood clamped down, prompting sharp criticism and sparking these lawsuits.

In another legal storm, the Security and Exchange Commission (SEC) fined Robinhood $65 million in December 2020. The allegation was akin to a short-change artist skimming off the top.

Robinhood was accused of not delivering the best execution price on trades. In the investing world, where every cent counts, this was a cardinal sin.

Robinhood Lawsuits

To put the fine in perspective, Robinhood had nearly 13 million users by the end of 2020. This meant the company essentially had to pay around $5 per user as a penalty for its alleged transgressions. For a firm that prided itself on offering “free” trading, this was a bitter pill to swallow.

The Massachusetts Securities Division has also tangled with Robinhood, filing a complaint in December 2020. This action portrayed Robinhood as an irresponsible host, enticing inexperienced investors to the financial feast and then leaving them to fend for themselves.

The complaint focused on Robinhood’s aggressive marketing strategies and the gamification of investing, which attracted a record-breaking number of first-time investors during the COVID-19 pandemic.

The Road to Justice

To understand the impact of this suit, consider that Robinhood added more than 3 million users in the first four months of 2020 alone. Each one of these new traders, like a fledgling bird, was potentially vulnerable to financial predators.

One thing’s clear – Robinhood has found itself embroiled in more legal battles than a scrappy alley cat has scars. Despite its promise to break down financial barriers, the app has, for some, erected new ones, leading to significant backlash.

As each lawsuit progresses, we will continue to track this rebellious upstart’s journey through the dense thicket of financial regulation and public sentiment.

We hope you found this article on Robinhood lawsuits useful.