Customers who owned stocks such as AMC Entertainment, the former Bed Bath & Beyond, and GameStop claimed in the proposed class action that they lost money because Robinhood stopped them from buying more as social media-fueled trading drove prices skyward.
Other holders of the stocks also said they were harmed, because the restrictions eventually caused prices of their stocks to fall.
But in a 3-0 decision, the 11th U.S. Circuit Court of Appeals in Atlanta said Robinhood’s standard customer agreement specifically authorized the restrictions and did not suggest that Robinhood would accept all trade orders.
‘Enforcement 40’ for 2020
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