Robinhood customers sue over removal of GameStop, others
By Chris Dolmetsch Bloomberg,Updated January 28, 2021, 12:44 p.m.
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The Robinhood application on a mobile device.Andrew Harrer/Bloomberg
(Bloomberg) Robinhood Markets was hit by at least two customer lawsuits after restricting transactions on stocks including GameStop Inc. following a frenzied runup driven by Reddit-inspired traders.
Robinhood was named as a defendant in federal lawsuits filed in Manhattan and Chicago on Thursday.
In the New York suit, Robinhood user Brendon Nelson, of Massachusetts, said the company removed GameStop from its trading platform in the midst of an âunprecedented stock rise,â depriving individual investors of the ability to invest and manipulating the market. The decision was a breach of its customer agreement and was in violation of financial industry rules, according to the complaint.