Lawsuits over GameStop trading expand beyond Robinhood, alleging an antitrust conspiracy
One attorney has filed a motion before the U.S. Judicial Panel on Multidistrict Litigation to coordinate 42 class actions into multidistrict litigation in the Northern District of California. Robinhood is one of 35 defendants and their subsidiaries facing lawsuits over the Jan. 28 trading halt, according to court papers.
By Amanda Bronstad|February 10, 2021 at 08:56 AM|The original version of this story was published on The National Law Journal
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Litigation over a run on stock in GameStop and other companies—which touched off an abrupt trading halt on Jan. 28—has expanded beyond Robinhood and its customers, with attorneys now alleging a conspiracy to manipulate the market that involved several other online trading platforms, hedge funds and clearinghouses.
Robinhood halted trades of at least 13 companies last month after Reddit users and others bought up their stock, sending share prices soaring and threatening short sellers with potentially billions of dollars in losses. Most of the lawsuits first filed alleged consumer fraud and breaches of fiduciary duty against Robinhood on behalf of its customers, but the latest class actions brought claims under antitrust law, naming dozens of defendants such as hedge fund Citadel and brokerage firm TD Ameritrade Inc.
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