Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Robinhood Must Face Manipulation Claims Over Meme Trading (2)

Aug. 11, 2022, 8:24 PM

Robinhood Markets Inc. must face market manipulation claims from retail investors over its January 2021 decision to halt purchases of GameStop Corp. shares and other meme stocks during a social media-fueled trading frenzy.

A Miami federal judge dismissed some allegations against the platform, but is allowing others in a proposed investor class-action lawsuit to move forward.

US District Judge Cecilia Altonaga said in her ruling published Thursday that the case raises “interesting legal questions, convoluted by the novelty of Robinhood’s platform, but at the end of the day, plaintiffs’ market manipulation claims clear the particularized threshold.”

A Robinhood official said ...