Robinhood Defeats Investors' 'Meme Stock' Claims

By Elise Hansen (January 27, 2022, 3:01 PM EST) -- Robinhood on Thursday defeated claims that it wrongly blocked investors from buying "meme stocks" during last year's market volatility, with a Florida federal court finding the stock-trading platform acted within the scope of its customer agreement.

U.S. District Judge Cecilia M. Altonaga said investors had failed to adequately allege any of the seven counts of their complaint, which included negligence, breach of fiduciary duty and civil conspiracy. The investors won't be able to amend their claims, and Judge Altonaga said another attempt would be "futile."

"No doubt, plaintiffs were gravely disappointed when Robinhood suspended purchases of the meme stocks and their...

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