People should sue Robinhood. The last few days have made it clear that the big players have all the power when it comes to stock trading. The small investors who realised 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.
Photo: A screenshot of the GameStop stock price on Google
People Should Sue Robinhood
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. The 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.
Robinhood Lawsuit Payout
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.
Alistair Vigier is the CEO of ClearWay Law, a legal platform that connects people that need a lawyer with one.