Robinhood Faces Over 30 Class-Action Suits for Pausing ‘Meme Stock’ Buys | Burns & Wilcox

The online and app-based stock trading broker Robinhood faces at least 34 class-action lawsuits as of Feb. 2 over its decision to prevent purchases of shares in GameStop and several other so-called “meme stocks” like AMC Entertainment and BlackBerry at the end of January 2021.

 

“Even cases with a seemingly clear-cut defense and low likelihood of settlement carry defense costs, so having a D&O Insurance policy to mitigate those costs is crucial.” –Marvin Cigarroa, Broker, Professional Liability, Burns & Wilcox, San Diego, California

 

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