Retail merchants in two U.S. states sued Robinhood Markets Thursday over its choice to forestall purchase orders on GameStop (GME) and different so-called “meme shares” swept up within the Reddit-fueled buying and selling frenzy.
The separate fits slam Robinhood over a call that had speedy repercussions for impacted shares. GameStop, which had been hovering for days on quick squeezing and mass hypothesis, started tumbling downward after Robinhood, a serious retail buying and selling hub, carried out the maintain.
Massachusetts resident Brendon Nelson alleged Robinhood tried to “sluggish the expansion of GME” with out professional trigger, a transfer he stated advantages Robinhood’s institutional traders over its purchasers in violation of its buyer settlement. He filed a class action suit in New York federal court docket.
The opposite case, filed by Richard Joseph Gatz in Chicago federal court docket, alleged Robinhood “prompted irreparable hurt” to retail merchants of Nokia, AMC Theaters and BlackBerry when it disabled purchase orders Thursday, in accordance with Bloomberg.
Robinhood didn’t instantly reply with remark.