$GameStop (GME.US)$ Robinhood must face U.S. market manipula...

Robinhood must face U.S. market manipulation claims over 'meme stock' rally

2022-08-11



Per Reuters:

Stock trading platform Robinhood Markets Inc, $HOOD, must face market manipulation claims over restrictions it placed on trading during last year's "meme stock" rally, a U.S. judge has ruled.

The day after GameStop reached its peak, Robinhood abruptly restricted trading in some meme stocks, claiming that it had been forced to do so by a liquidity crunch, Wall Street rules and clearinghouse limits. The restrictions caused the stocks to plunge, prompting other lawsuits congressional hearings and an SEC investigation.

Previously on Jan 27th, a U.S. federal court dismissed a lawsuit accusing Robinhood Markets Inc of violating state laws by restricting trades on so-called meme stocks during a January 2021 rally, a move that retail traders allege resulted in billions in losses.