{"id":65742,"date":"2022-08-12T15:09:41","date_gmt":"2022-08-12T12:09:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=65742"},"modified":"2025-09-06T21:39:44","modified_gmt":"2025-09-06T18:39:44","slug":"robinhood-faces-class-action-over-market-manipulation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/robinhood-faces-class-action-over-market-manipulation\/","title":{"rendered":"Robinhood faces class-action over market manipulation"},"content":{"rendered":"

Investors in GameStop Corp, AMC Entertainment Holdings Inc and seven other securities may file a class-action lawsuit against the online broker Robinhood for market manipulation and artificial price suppression. \u0441\u043e\u043e\u0431\u0449\u0430\u0435\u0442<\/a> Reuters, citing a ruling from the Southern District of Florida.<\/p>\n

In January 2021, Robinhood temporarily barred<\/a> users from buying at the time the stock prices of several companies had surged to record highs, including meme cryptocurrency Dogecoin.<\/p>\n

The platform was accused of a \u201cdeliberate and conscious\u201d denial of private traders\u2019 ability to invest. The volatility led to large losses for hedge funds that had bet on falling stock prices.<\/p>\n

Earlier, the court had rejected claims of any collusion between Robinhood and other brokerages, as well as claims that the company violated duties to its clients.<\/p>\n

However, in the new ruling the judge rejected the platform\u2019s motion that artificially depressing the prices of nine stocks by canceling buy orders, liquidating, and closing options could not be considered market manipulation.<\/p>\n

\n

\u201cAlongside the opaque and contradictory statements made to hide the lack of capital, [these restrictions] indicate Robinhood’s intent to artificially depress stock prices for its own benefit,\u201d the ruling states.<\/p>\n<\/blockquote>\n

The company must also prove that the alleged manipulations were not securities fraud.<\/p>\n

The court rejected the claim that the actions were intended to induce investors to sell their shares.<\/p>\n

Robinhood’s chief litigation and enforcement counsel, Sheryl Krampton, told Reuters that the online broker would continue to defend its position, calling all restrictions it had taken \u201cappropriate and necessary to support customers.\u201d<\/p>\n

Earlier, ForkLog reported that Robinhood will pay $9.9 million<\/a> to a group of clients who filed a suit against the online broker over systemic outages in its app. The plaintiffs estimated their damages at $20.4 million.<\/p>\n

Earlier, after Robinhood’s second-quarter 2022 earnings, the company said it planned to lay off 23% of the firm’s staff<\/a>.<\/p>\n

Follow ForkLog\u2019s Bitcoin news on our Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Investors in GameStop Corp, AMC Entertainment Holdings Inc and seven other securities may file a market-manipulation lawsuit against the online broker Robinhood.<\/p>\n","protected":false},"author":1,"featured_media":65743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2248,1162,1243,1145,1234,26],"class_list":["post-65742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-amc","tag-court-cases","tag-gamestop","tag-market-analysis","tag-robinhood","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=65742"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65742\/revisions"}],"predecessor-version":[{"id":65744,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65742\/revisions\/65744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/65743"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=65742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=65742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=65742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}