Rosen Law Aims To Lead Securities Claims In Robinhood MDL
Elise Hansen, 06 April 2021
The Rosen Law Firm PA on Tuesday sought to spearhead securities claims against Robinhood in newly centralized suits over the stock-trading app’s decision to block users from buying certain volatile stocks such as GameStop.
Cody Todd requested to serve as lead plaintiff for certain Robinhood Markets Inc. customers, with the Rosen Law Firm as lead counsel. The motion is the first such request since the suits were centralized in Florida federal court last week.
Todd is seeking to serve as lead plaintiff for customers who used Robinhood’s platform to sell any of the restricted stocks as a result of the blackout on buying. On Jan. 28, Robinhood told customers that it would only allow users to sell certain volatile stocks, such as American Airlines Group Inc., AMC Entertainment Holdings Inc., BlackBerry Ltd., Bed Bath & Beyond Inc. and GameStop Corp.
Robinhood also increased margin requirements for those securities, which forced some users who had bought the stock on a margin loan to either sell their shares or face a margin call, the filing said. The move caused a plunge in prices for the stocks in question, according to the filing. Todd claims to have lost about $8,056, which he argued gives him a significant financial interest in the litigation.
