Robinhood Wins as 11th Cir. Affirms ‘Meme Stock’ Suit Dismissal

Financial trading platform Robinhood Markets Inc. prevailed in a suit alleging it agreed to freeze trades of highly shorted GameStop stock options after the 11th Circuit affirmed a lower court’s dismissal of the case.

The US Court of Appeals for the 11th Circuit in a Wednesday opinion held that investor plaintiffs failed to plausibly allege an unreasonable restraint of trade because they didn’t allege harm to a relevant market.

The case hands a win to Robinhood, which has faced several legal challenges around the “short squeeze” in early 2021, when stocks rose sharply and distressed short positions.

Plaintiffs had alleged ...