Robinhood Defeats Meme Stock Trading Suit’s State-Law Claims (1)

Robinhood is free of state-law allegations over its decision to temporarily halt trading in certain meme stocks last winter, after a federal judge in Florida dismissed the claims with prejudice in an order docketed Thursday.

Traders accuse Robinhood of negligence, breach of fiduciary duty, and civil conspiracy for blocking them from purchasing meme stocks such as GameStop Corp. and AMC Entertainment Holdings Inc.

But “entertaining their claims “would sanction a departure from the parties’ own agreement” and tort law principles, the U.S. District Court for the Southern District of Florida said.

Traders sued Robinhood Markets Inc., Robinhood Financial LLC, ...