Robinhood Faces 30 Lawsuits Across Several States After Restricting Trading

Investment app Robinhood is facing 30 lawsuits after restricting the trading of certain stocks, court records show, according to the Wall Street Journal.

Investors have filed lawsuits in federal courts across several states, including New Jersey, Florida, California, Texas, the Wall Street Journal reported Wednesday. The complaints allege that the company breached its contract when it restricted the trade of some stocks on its app. Reddit users on r/WallStreetBets drove up the price of Gamestop over 600% after discovering that the stock had been heavily shorted by hedge funds, meaning they were betting that the price of the stock would go down. After hedge funds lost billions of dollars, Robinhood announced that they were restricting users from buying Gamestop, AME, Blackberry and other stocks on its app.