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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!