Robinhood Investors Fail to Save Suit Alleging IPO Deceptions

Robinhood Markets Inc. shed a proposed investor class action over allegedly misleading statements in its initial public offering documents.

US District Judge Edward M. Chen granted Robinhood’s motion to dismiss the plaintiffs’ second amended complaint, without giving the plaintiffs a chance to change it. The investors didn’t adequately allege claims under Sections 11, 12, and 15 of the Securities Act of 1933, Chen said.

Lead plaintiffs Vinod and Amee Sodha alleged that Robinhood misled them by not disclosing slowing revenue growth by the release of its July 2021 offering documents. However, the shift in trading that occurred reflected a change ...