Robinhood, TD America Trade Restriction Suits Sent to Florida

Traders who accuse Robinhood, TD Ameritrade, and other brokers of improperly restricting their ability to purchase “meme stocks” will litigate their cases in the Southern District of Florida after the U.S. Judicial Panel on Multidistrict Litigation centralized and sent their suits there.

The cases stem from restrictions imposed following “frenetic trading” in stocks such as GameStop Corp., AMC Entertainment Holdings Inc., and Tootsie Roll Industries Inc., allegedly “spurred by members of a Reddit forum called ‘r/WallStreetBets.’”

A majority of plaintiffs and all of the responding defendants supported centralizing the 39 cases pending in 14 districts, the panel said. ...