Robinhood hit with class-action lawsuit after restricting GameStop stock
Banking And Finance,Stock Market,Gamestop,Courts
The online stock trading app Robinhood was hit with a class-action lawsuit Thursday by a trader upset the company restricted buying of GameStop shares amid a market feeding frenzy involving small-time investors inspired by a Reddit web forum.
In the Manhattan federal court suit, Massachusetts resident Brendon Nelson claimed the app blocked users from its service by pulling the shopping mall video game store’s stock — which was sent skyrocketing in value over the past few days — from its trading.
“On or about January 27, 2021 Robinhood, in order to slow the growth of GME deprived their customers of the ability to use their service, abruptly, purposefully, willfully, and knowingly pulled GME from their app,” the suit states.
