Cleveland Law Firm Exploring Possible Class Action Suit for Robinhood Users After App Restricts Trading on Gamestop, Other Stocks

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click to enlarge Cleveland Law Firm Exploring Possible Class Action Suit for Robinhood Users After App Restricts Trading on Gamestop, Other Stocks
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ChapmanAlbin, a securities and investment law firm based in downtown Cleveland, announced today that it is gathering information and investigating claims from Robinhood users who were restricted by the app from buying certain stocks, including Gamestop and AMC, both of which have become international stories after Reddit users organized a short-squeeze on hedge funds, driving Gamestop's stock price from $4 to more than $400 at its high in a matter of weeks.

Robinhood, a commission fee-free app favored by the retail investors who drove the stocks' ascent, restricted trading on Gamestop and other stocks mentioned frequently by the WallStreetBets subreddit. The move not only has drawn the quick ire of Congressional leaders like AOC who want an investigation into Robinhood's decision but law firms interested in representing users in a class action.

One has already been filed in New York and ChapmanAlbin is exploring its own.

“Just a month ago, the Massachusetts securities regulators filed a lawsuit against Robinhood for aggressive, dishonest marketing practices geared toward inexperienced investors,” Philip Vujanov, an attorney at ChapmanAlbin, said in a statement. “Now, Robinhood appears to be up to the same old tricks, recruiting social media influencers to encourage individuals to sign up and fund a Robinhood account and beginning purchasing shares of securities such as Gamestop and AMC, with no consideration as to the suitability of the purchases. To make matters worse, Robinhood proceeded to place trading restrictions on the securities just a day later.”

ChapmanAlbin, which didn't immediately respond to a request from comment from Scene, invites Robinhood users to contact Vujanov at [email protected]

A submission form is also available at their website.

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