Which lawsuits are targeting Robinhood over the January trading frenzy?

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Robinhood Faces Multiple Lawsuits and Regulatory Inquiries Over January Trading Frenzy

Robinhood is currently facing numerous class action lawsuits and inquiries from various US regulatory bodies, including federal financial regulators, state attorneys general, and the US Congress, concerning its decision to restrict the purchase of certain stocks during the frenzied trading period in January. The company has stated its belief that the claims in these lawsuits are without merit and that it intends to defend itself vigorously.
Allegations in Class Action Lawsuits

The class action lawsuits filed against Robinhood generally allege a range of common law claims. These include breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, and breach of fiduciary duty. These allegations form the basis of the legal challenges Robinhood is navigating in relation to its trading restrictions.
Regulatory Scrutiny

In addition to private litigation, Robinhood is cooperating with investigations initiated by federal financial regulators and state attorneys general. The US Congress has also become involved, with inquiries directed at the company's actions during the significant market volatility experienced in January. These regulatory examinations are focused on Robinhood's decision-making process and its impact on market participants.
Context of the Trading Frenzy

The trading restrictions by Robinhood, particularly concerning shares of companies like GameStop, occurred amidst unprecedented market volatility. This period saw dramatic price surges, prompting broader calls for regulatory review of social media platforms, hedge funds, and trading applications, with some alleging market manipulation. The upheaval was notably amplified through online forums such as Reddit's "WallStreetBets" subreddit.

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Which lawsuits are targeting Robinhood over the January trading frenzy?

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