Originally published at: Class-action lawsuit filed against Robinhood for blocking purchases of GameStop stock | Boing Boing
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Did you really think the stock market was for little people like you? You’re dupes and fodder, nothing more. The real money is offended that you thought you had any power, and is going to put you in your place.
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Re-post:
A class-action lawsuit and an investigation sounds good to me.
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I’m sure both are warranted, but I imagine the only tangible outcome will be to prevent companies from building platforms like Robinhood in the future. It would certainly make it hard to court investors.
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Yes, the bloom will be off the crappy rose now and the stink of lost CAPITOL will stay around for awhile.
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And I immediately think of…
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Citing extreme market volatility, eh?
Ham-handed to tell your users who your real masters are like that.
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Looks like a Senate investigation is imminent.
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I haven’t looked, because I don’t care to use it, but my bet is that robinhood’s terms of service specifically make you give up your rights to join a class action. If this turns into thousands of individual suits against robinhood, and their legal brains can’t keep up, then I look forward to this as a test of that tactic to still sue the company en masse and demonstrate their terms suck.
anyone know how i can get in on the class action lawsuit? i tried to buy GME and the order was cancelled this morning >:(
Curious to know why, What’s your rationale?
Do you honestly believe GME is undervalued at $300/share?
Telling their clients, “No buy, only sell.” That seems like outright market manipulation. Like slam dunk attorneys general stuff. And right at the beginning of a Democrat-controlled government, where the other side of the political coin is batshit-insane Populists. Robin Hood’s current position seems like the definition of a Rock and a Hard Place. Not to mention that they’re also hamstrung between their clients and their suppliers. They seem effed.
…which might mean a major reduction in trading, which ought, in theory, to lower market values. You’d think the markets would react negatively to all this, but yet again they failed to respond to some obvious stimuli.
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Eta: …sorry
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I’m not @vegenaise but yes, it is undervalued at $300/share, because of the galaxy of shorts out there that’ll have to pay me market rate for shares to conclude their transaction.
Except that most of the old shorts have already been covered so unless you’re expecting GME to keep going up based on some fundamental reason and not WBS helium, we’re now looking at the downward slope.
The juice has been squeezed. So good luck with that.
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M1 also blocked the same securities.
That’s it for Robinhood. They’ll be bleeding users now that they’re cancelling options without adequate notice. Next up, I hope regulators and elected officials take a good hard look at Citadel, the real villains of the piece (Robinhood is just a craven vassal).
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I see. So Robinhood nuked their user base and cratered any chance at an IPO … why, again?
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I think the slightly less sinister and more reasonable explanation is Robinhood plays loose with their net capital ratios and someone in accounting went:
“Hey we can be on the hook to cover the losses to the clearing houses for months on end while this shitstorm is being sorted out. If that’s the case we’ll be running afoul of the SEC net capital obligations and at risk of shutdown”.
I think a press release of “Sorry guys we don’t have enough money” isn’t the most reassuring in the world so they are trying to obfuscate the reason a bit.
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