Class-Action Lawsuit Filed Against Trading App Robinhood, Crypto Twitter Takes The Opportunity To Promote The Industry

The financial trading app Robinhood is been served with a federal class action lawsuit after it restricted trades to GameStop and AMC, stocks popular on the Reddit forum r/WallStreetBets, infuriating members of the thread and stoking widespread conversation about the fairness of hedge funds. 

The lawsuit, filed in the Southern District of New York on Thursday, alleges that the app “purposefully, willfully, and knowingly removing the stock ‘GME’ from its trading platform in the midst of an unprecedented stock rise, thereby deprived [sic] retail investors of the ability to invest in the open-market and manipulating the open-market.”

Supporters of the suit argue that members of the Reddit thread were only doing what hedge funds do on a daily basis. Robinhood sells itself as a platform democratizing finance for all, a tactic which will likely be far less effective after this ordeal. Members of crypto Twitter have taken the opportunity to promote cryptocurrenicies, highlighting that crypto holders are able to buy and sell whenever they want and are not at the mercy of an app like Robinhood.

By Emily Mason

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