Robinhood conspired with the big Wall Street hedge funds to screw with ordinary people who are suddenly getting rich with investments like GameStop … according to a new lawsuit.
The free trade application was just hit by a class action filed in federal court … the day after Robinhood banned retail investors from continuing to buy shares in several companies in the battle between Reddit bros and hedge fund managers.
Melvin Capital and Citadel, two massive hedge funds, are also being sued … as the lawsuit says they were short selling companies like GameStop and losing a lot of money on rising share prices. The claim is that the fund conspired with brokers like Robinhood to block the purchase of certain shares in order to stem its financial bleeding.
In the process, moved by Larry Friedman and obtained by TMZ, a group of retail investors says that the move from Robinhood to close buyers it caused prices to plummet in favor of big hedge fund investors … while seriously damaging the finances of small ones in the process.
The lawsuit says the problem is not limited to Robinhood and the hedge funds – Charles Schwab and TD Ameritrade are also being sued.
The little ones are chasing the fat cats on Wall Street for at least $ 5 million in damage.
Friedman told TMZ, “The trading rules should be the same for everyone, no matter how big or small your investment. There is no room for intimidation or manipulation in the market. Fortunately, courts are still the best place to find justice. “