Robinhood Trading Restriction Suit Gets Lead Counsel, Structure

Litigation against online brokerages including Robinhood and TD Ameritrade alleging improper restrictions on “meme stock” purchases will go forward with claims grouped into four tranches, a federal judge overseeing the cases in Florida said.

The most efficient way to handle the litigation is to separate the claims by type, with groups for antitrust claims, state law claims against Robinhood, state law claims against other broker-dealers, and federal securities claims, the U.S. District Court for the Southern District of Florida said.

Investors accuse the brokerages of blocking them from trading stocks such as GameStop Corp., AMC Entertainment Holdings Inc., and ...