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Robinhood Wants Traders’ GameStop Securities Fraud Claims Tossed

Jan. 10, 2022, 8:24 PM

Traders who say Robinhood placed improper restrictions on “meme stock” purchases failed to allege market manipulation or any fraudulent misrepresentations and the case should be dismissed, the investing platform said in federal court in Florida.

Investors accuse Robinhood Markets Inc., Robinhood Financial LLC, and Robinhood Securities LLC of preventing trades and costing them money, but federal securities laws don’t “prohibit the conduct alleged” in the complaint, according to a motion to dismiss filed in the U.S. District Court for the Southern District of Florida.

Traders say Robinhood blocked them from trading GameStop Corp. and other stocks after Reddit’s r/WallStreetBets forum ...