The authorized proceedings focusing on Robinhood over its actions throughout the January 2021 brief squeeze proceed on the Florida Southern District Courtroom.
The events within the multi-district litigation have supplied a report on the mediation standing. The doc was filed with the Courtroom on Might 24, 2023.
On Might 17, 2023, counsel for Lead Plaintiff Blue Laine-Beveridge and the plaintiffs named within the Amended Consolidated Class Motion Criticism, and defendants Robinhood Markets, Inc., Robinhood Monetary LLC and Robinhood Securities, LLC met for an in-person mediation session with Robert A. Meyer, Esq. of JAMS. The events failed to achieve an settlement.
This replace pertains to the Federal Securities Tranche of the lawsuit.
The Consolidated Class Motion Criticism (CCAC) incorporates two claims for aid. Depend I alleges that Robinhood manipulated the costs of the Affected Shares in violation of part 9(a) of the Securities Trade Act of 1934. Depend II alleges an an identical concept, nevertheless it depends on part 10(b) and rule 10b-5 promulgated thereunder.
- Depend I incorporates two subclaims underneath sections 9(a)(2) and 9(a)(4), respectively. Plaintiffs allege that Robinhood violated part 9(a)(2) by deliberately manipulating the market to artificially depress the costs of the Affected Shares. As for part 9(a)(4), Plaintiffs allege that Robinhood misstated or omitted materials details to mislead traders into pondering that it didn’t have a liquidity drawback — an issue that will trigger Robinhood to lose traders, prospects, cash, and relatedly, the possibility at a profitable preliminary public providing.
- Depend II alleges that Robinhood manipulated the market when it (1) raised margin necessities (2) canceled buy orders for the Affected Shares, (3) closed out choices in AMC and GME early, and (4) prohibited and restricted purchases of the Affected Shares on its platform. These actions allegedly “created a misunderstanding of precise demand for the Affected Shares” and “artificially elevated provide of the Affected Shares.
In August 2022, the Courtroom partially dismissed the grievance however left the majority of the claims to which Robinhood needed to reply.
On September 12, 2022, Robinhood Markets, Inc., Robinhood Monetary LLC and Robinhood Securities, LLC filed their reply to the Consolidated Class Motion Criticism filed by Lead Plaintiff Blue Laine-Beveridge and named Plaintiffs Abraham Huacuja, Ava Bernard, Brandon Martin, Brendan Clarke, Brian Harbison, Cecilia Rivas, Garland Ragland Jr., Joseph Gurney, Santiago Gil Bohórquez, and Trevor Tarvis, and asserted their affirmative and different defenses.
General, Robinhood denies each allegation contained within the Criticism, together with, with out limitation, the Desk of Contents, headings, sub-headings, footnotes and non-numbered paragraphs contained within the Criticism. Robinhood’s reply additionally included 22 affirmative defenses.
