Robinhood Lawsuit Over GameStop To See Dismissal In 2 Weeks, HOOD Stock Gains

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As a researcher with experience in financial markets and securities law, I’m closely following the developments surrounding the Robinhood GameStop lawsuit settlement. While the details of the settlement have not been disclosed yet, it is encouraging to see that both parties are moving towards a resolution.

Robinhood is reportedly nearing a resolution with investors who filed a lawsuit against the trading app last year over its restriction of meme stock trades, such as GameStop. The anticipated conclusion of the Robinhood meme stock lawsuit could be reached within the next fortnight. Notably, HOOD’s stock price experienced substantial growth following this announcement.

Robinhood GameStop Lawsuit Settlement

As a crypto investor following the news closely, I’m excited to share that according to a court filing made on May 28, 2024, Robinhood’s legal team announced they have reached a settlement with affected investors in an ongoing case. The settlement process is nearing completion, and based on this progress, Robinhood anticipates the finalization of the agreement within the next two weeks. This means that the lawsuit could be dismissed soon.

In the filing from 2021, the particulars of the Robinhood settlement remain undisclosed. This legal action, initiated by plaintiff Blue Laine-Beveridge, asserts that Robinhood engaged in market manipulation, a claim that resulted in significant financial damages for the investors.

Furthermore, the grievance alleged that Robinhood’s actions of limiting the buying of certain stocks between January 28 and February 4, 2021, constituted illegal price manipulation. Additionally, the lawsuit asserted that Robinhood eliminated substantial amounts of equity, worth tens of billions of dollars, for meme stock investors.

These meme stocks, such as GameStop and AMC Entertainment (AMC), were among those significantly influenced. Furthermore, the trend reached investors dealing with shares in Bed Bath & Beyond, BlackBerry, Nokia, trivago, Koss, Express Inc., and Tootsie Roll.

Additionally, this investor lawsuit is just one part of a larger legal battle taking place in various U.S. courts over Robinhood’s behavior during the meme stock craze. Notably, the announcement of a settlement follows Judge Cecilia Altonaga’s denial of the investors’ application to file a fresh motion for class certification on April 19, 2024. Previously, they had faced a similar rejection in November of the prior year.

Update On HOOD & GME Stocks

As a crypto investor, I’ve noticed the buzz surrounding meme stocks like GameStop and AMC. These stocks have gained immense popularity among individual investors, fueled by social media hype. In January 2021, GameStop’s stock price experienced an unprecedented surge due to a short squeeze. This unexpected move resulted in substantial losses for hedge funds and other short sellers, while some retail investors reaped significant profits. During this period, Robinhood faced backlash with a lawsuit filed against them for restricting GME trading.

Keith Gill, better known as “Roaring Kitty,” resurfaced on social media platform X on May 13, 2024, sharing cryptic memes. His comeback ignited enthusiasm among traders and significantly influenced GameStop’s stock price. On May 14, the stock closed at an impressive $48.75 – its highest close since late 2021.

Despite a significant decline, the stock price dropped over 50% since then, falling 10.68% during regular trading on May 29 to reach $21.24. In after-hours trading, it saw an extra decrease of 2.17%, bringing its value down to $20.78. Conversely, Robinhood’s stock experienced a growth of 3%, closing the day at $21.08 on May 29.

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2024-05-30 10:36