Robinhood has to face a lawsuit for market manipulation in the USA. That reported the Reuters news agency and refers to a judgment of a court in Florida.
The judge gave the green light to a class action lawsuit filed by customers of the trading app in the wake of the meme stock rally. In the past year, the price of stocks that are actually ailing, such as GameStop or AMC, have skyrocketed. The reason was a battle between private investors and hedge funds. The latter bet on stock prices falling, but retail investors hyped it up with social media-coordinated investments, dealing a serious blow to Wall Street.
In the middle of this stock market thriller, Robinhood temporarily suspended the buy function for corresponding stocks. Private investors sensed market manipulation and collusion with hedge funds. The case is now before the court.