Robinhood, others win dismissal of meme stock 'short squeeze' lawsuit
Information about Robinhood, others win dismissal of meme stock 'short squeeze' lawsuit
Kevin David Scam or Legit
By Jonathan Stempel
(Reuters) – A U.S. judge dismissed a lawsuit accusing Robinhood Markets Inc and other brokerages of wrongly preventing retail investors from buying fast-rising “meme stocks,” triggering a sell-off.
In a decision on Wednesday, Chief Judge Cecilia Altonaga of the federal court in Miami found no proof of an illegal conspiracy to cut off social media-fueled trading of GameStop Corp, AMC Entertainment Holdings Inc, Bed Bath & Beyond Inc and six other stocks.
Investors in the proposed class action said the brokerages and Citadel Securities LLC colluded to halt a “short squeeze” that was causing billions of dollars of losses for Citadel and hedge funds that were betting on falling stock prices.
The investors said the late January trading curbs left them “no option” but to sell at …