Investors who were pursuing legal action against Robinhood over trading restrictions imposed in early 2021 have faced another setback. The United States District Court for the Southern District of Florida rejected their request for class certification. Chief Judge Cecilia Altonaga stated that the plaintiffs failed to convince the court that issues of individualized reliance would not be prevalent. The lawsuit revolves around allegations of market manipulation by Robinhood during the “meme stock” short squeeze. Robinhood implemented trading limitations due to heightened market volatility and increased deposit requirements from regulators. The plaintiffs claim that Robinhood manipulated the market by imposing restrictions and providing misleading information about volatility. Robinhood argued against class certification, citing deficiencies in the class representatives and asserting that individualized issues of reliance and damages would overshadow common concerns. While the court acknowledged that the plaintiffs have shown the case and their representatives are suitable for class treatment, they were not persuaded that individualized reliance would not be a significant factor.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Cecilia Altonaga
Companies	Robinhood Securities, Robinhood Markets, Robinhood, Robinhood Financial, United States District Court for the Southern District of Florida
Currencies	None
Securities	None