Class Action Complaint Against Robinhood App Filed In NY Hours After They Restricted Trading Of GameStop, AMC Stocks

The backlash against Robinhood is heading to court.

On Thursday morning, the popular online brokerage app took steps to restrict the trading of GameStop, AMC, and other “meme stocks” after a group of Reddit users banded together to drive up stock prices of certain companies to troll traditional hedge funds that get rich off shorting stocks

Statement from Robinhood

We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”

Outraged politicians and everyday Robinhood users immediately blasted the app over the decision to restrict trading on meme stocks.

Just hours after Robinhood announced they were restricting trades on their app, someone filed a class-action complaint against the company in New York.

Considering the intense backlash from everyday users who joined the app in recent days due to the GameStop story, it’s baffling that Robinhood hasn’t reversed course or apologized for going against their own ethos of “democratizing finance for all.”