If you haven’t already seen the news, earlier this morning online trading platform Robinhood prevented its account holders from purchasing shares of Gamestop. Robinhood has been the platform of choice of younger retail traders who are members of the Wall Street Bets subreddit. These retailers have been buying shares of Gamestop, ticker GME, pushing the stock higher over the past week into a classic short squeeze. Today morning Robinhood blocked all new buy orders for GME stock, as well as other meme stocks including AMC, BB, and NOK infuriating the Wall Street Bets community. Stocks of GME and these other stocks are currently trading significantly lower off earlier highs.
This action might give rise to various legal actions against Robinhood by investors. There has already been discussion on Wallstreetbets about this issue. Stay tuned and we’ll post more information here as we follow the story.
Meanwhile, our law firm is investigating potential investor claims. If you are a Robinhood investor and have questions about whether you may have a class action claim against Robinhood, gives us a call or send us an email. We’d love to try to help.
Have you been affected by Robinhood or another broker account? Get in touch with us!