Robinhood Beats Consolidated Suit Over GameStop Trade Cutoff

Robinhood defeated a consolidated lawsuit accusing the online stock trading platform of causing investors’ financial losses by placing improper restrictions on their ability to buy high-flying “meme stocks.”

The investors’ contract with Robinhood gave it the right to restrict their ability to trade securities and to refuse to accept their transactions, the US Court of Appeals for the Eleventh Circuit said Thursday.

Robinhood also was shielded by the basic principles of tort law that deny a duty to avoid causing a purely economic loss, Judge Britt C. Grant said for the court, affirming a district court’s dismissal of the lawsuit. ...