Article: Short Squeeze Stockbrokers And Hedge Funds Face Proposed Antitrust Class Action

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Joseph Saveri Law Firm | 21.02.02

On January 28, many brokerages abruptly and unilaterally restricted retail investors’ ability to buy long positions—in some cases removing the option to buy shares of the relevant securities while openly permitting them to sell their existing shares or prohibiting users from viewing the tickers for some or all of the relevant securities.

The Joseph Saveri Law Firm filed an antitrust class action lawsuit today on behalf of a class of retail investors in federal court against 35 defendants, including Robinhood, E*TRADE, TD Ameritrade, Melvin Capital, Citadel, Sequoia Capital, and others. The plaintiffs allege that they and other retail investors continue to be injured due to a large, overarching conspiracy among the defendants to stop them from buying stocks in open and fair public securities markets. Plaintiffs contend that the purpose and effect of the scheme was to shield hedge funds, venture capitalists, and institutional investors from massive losses they had exposed themselves to due to their highly speculative short selling strategies. Plaintiffs bring claims under the federal and state antitrust laws as well as other state laws and common law.

The retail investors held shares in twelve companies: GameStop (GME), AMC Theaters (AMC), American Airlines (AAL), Bed, Bath and Beyond (BBBY), Blackberry (BB), Express (EXPR), Koss (KOSS), Naked Brand Group (NAKD), Nokia (NOK), Sundial Growers Inc. (SNDL), Tootsie Roll Industries (TR), and Trivago N.V. (TRVG)

https://www.prnewswire.com/news/joseph-saveri-law-firm-inc/