A Robinhood user filed a class-action lawsuit Thursday following the app’s decision to restrict GameStop trading on its platform, a move that ignited a revolt from the small investors who led a frenzied surge in the company’s stock price.
The lawsuit, filed in federal court in Manhattan, claims Robinhood removed the video game retailer „purposefully and knowingly to manipulate the market.“
The suit accuses Robinhood, a popular trading and individual brokerage app used by retail investors, of breaching its contract by failing to disclose it „was going to randomly pull a profitable stock from its platform.“ It also accuses the company of negligence and of breaching its fiduciary duties and its „implied covenant of good faith and fair dealing.“
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