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.
Source: Robinhood defeats investors’ appeal over meme stock frenzy
