Robinhood to face class action lawsuit from meme stock debacle: Report
2022.08.12 16:26
Robinhood to face class action lawsuit from meme stock debacle: Report
Cryptocurrency and stock trading platform Robinhood (NASDAQ:HOOD) will allegedly face allegations of market manipulation as part of a class-action lawsuit brought by investors in “meme stocks” from nine different companies during a January 2021 rally.
According to a Thursday report from Reuters, United States District Court Judge Cecilia Altonaga of the Southern District of Florida ruled that investors in GameStop (NYSE:GME), AMC and seven other unnamed stocks — which may include Nokia (NYSE:NOK) and BlackBerry (NYSE:BB) — could proceed with a lawsuit alleging that Robinhood artificially increased the supply of stocks. In January 2021, the price of several assets, including the meme token Dogecoin (DOGE), rose to all-time highs after Redditors on r/Wallstreetbets pumped up interest in certain stocks and cryptocurrencies.
