Odaily Planet Daily News The US Federal Court of Appeals upheld the decision to dismiss the investor class action against Robinhood Markets.
In September 2021, a total of 16 investors participated in a class action lawsuit against the trading platform, alleging that the company restricted them from buying 13 "meme stocks" when hedge funds were short-squeezed in January 2021. Investors claim this has prevented them from taking profits and has caused the shares to plummet.
However, U.S. Court of Appeals Judge Britt Grant said those arguments lacked merit. She explained that Robinhood "has the right to do these things" because the company has no legal obligation to protect these investors from purely financial loss.
Judge Grant added that this was because Robinhood was and is legally permitted to restrict its customers' ability to trade securities and refuse to accept any trades from them. (Cointelegraph)