Robinhood Users Denied Class Status in Trading Restrictions Suit

Robinhood users who sued the company over restrictions it placed on its trading platform in January 2021 were denied class certification by a federal judge in a consolidated multi-district case.

The proposed class action over the brokerage’s decision to halt trades of GameStop Corp. shares and other meme stocks at the height of a social media-fueled trading frenzy alleges that Robinhood Markets Inc., Robinhood Financial LLC, and Robinhood Securities LLC engaged in market manipulation.

Plaintiffs failed to show that individualized issues wouldn’t predominate among class members, Judge Cecilia Altonaga ruled Monday in US District Court for the Southern District of ...