Robinhood’s GameStop Story?2 Oct 2021 00:12
This should get messy:
https://www.protocol.com/newsletters/protocol-fintech/robinhood-florida-lawsuits?
'Robinhood CEO Vlad Tenev could use some of his corporate namesake's panache right now. Once boosted by fans of its no-commission trading on Reddit, he now faces a Twitter mob. They've gone from swapping signup codes to posting snippets from legal complaints in lawsuits filed after January's GameStop debacle.
This much isn't disputed: Robinhood blocked buying of GameStop, AMC and other meme stocks on Jan. 28. That prompted dozens of lawsuits, now consolidated into the two related complaints Robinhood faces in a federal court in Miami.
In the aftermath, the company swatted away accusations that it had restricted trading in GameStop and other stocks to help a big hedge fund get out of a short squeeze. Robinhood has said it had to block the trades to meet regulatory capital requirements, which can dramatically increase for volatile stocks.
But the lawsuits seek to paint a different picture, presenting internal company communications that suggest the company did shut down the trades under pressure from Citadel Securities, a key partner.'