Retail merchants in two U.S. states sued Robinhood Markets Thursday over its resolution to stop purchase orders on GameStop (GME) and different so-called “meme shares” swept up within the Reddit-fueled buying and selling frenzy.
The separate fits slam Robinhood over a choice that had instant repercussions for impacted shares. GameStop, which had been hovering for days on brief squeezing and mass hypothesis, started tumbling downward after Robinhood, a serious retail buying and selling hub, applied the maintain.
Massachusetts resident Brendon Nelson alleged Robinhood tried to “sluggish the expansion of GME” with out professional trigger, a transfer he mentioned advantages Robinhood’s institutional traders over its purchasers in violation of its buyer settlement. He filed a class action suit in New York federal courtroom.
The opposite case, filed by Richard Joseph Gatz in Chicago federal courtroom, alleged Robinhood “brought about irreparable hurt” to retail merchants of Nokia, AMC Theaters and BlackBerry when it disabled purchase orders Thursday, in line with Bloomberg.
Robinhood didn’t instantly reply with remark.