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A federal judge in Florida is recusing himself from one of the dozens of Robinhood class action lawsuits filed over the ill-fated GameStop stock restriction, citing news reports he’s read and other “discussions” he’s engaged in about the Robinhood scandal.
U.S. District Court Judge William F. Jung was reportedly set to preside over a class action lawsuit that alleged Robinhood, purveyor of a popular investing app, unfairly restricted the trading of GameStop stock, costing users money in lost opportunities.
Judge Jung says he only recently became aware of the case on his docket and sought random reassignment due to the “extensive discussions about this matter outside of court.” In addition, the judge indicated he had also “read up on it in the media in matters outside of the four corners of this lawsuit.”
Robinhood users are filing a large number of class action lawsuits following the GameStop stock restriction.
A subreddit of independent investors reportedly coordinated to drive up the price of the millennial mall favorite. As a result, GameStop stock skyrocketed from about $20 a share to $483. However, the price went into freefall, dropping over 70 percent after Robinhood and other brokers announced restrictions.
Dozens of class action lawsuits were quickly filed across the country accusing the retail investment app of stopping everyday investors from participating in unprecedented market activity. Users claim that Robinhood halted requests to buy GameStop stock that would have garnered significant returns.
In addition to civil litigation, the embattled investment broker also faces threats of an investigation by Congress, as well as attorney general offices in New York and Texas. The House Financial Services Committee is holding a hearing on Feb. 18 with Robinhood CEO Vlad Tenev expected to testify, according to Axios.
For its part, Robinhood has defended the move, telling users that it was forced to stop the sale of GameStop due to clearinghouse cost restrictions. In addition to GameStop, Robinhood has reportedly restricted trading on other stocks, including AMC and BlackBerry.
Are you a Robinhood user? Did you try to buy GameStop stock during the restriction? Tell us what you think in the comment section below!
The lead plaintiffs Taylor Perri, Ryan Heitz, and Kevin Sheehan, are represented by Michael S. Taaffe, Michael D. Bressan, Brandon M. Taaffe, and Jeremy M. Halpern of Shumaker Loop & Kendrick LLP.
The Florida Robinhood Class Action Lawsuit is Taylor Perri et al. v. Robinhood Markets Inc. et al., Case No. 8:21-cv-00234, in the U.S. District Court for the Middle District of Florida.
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8 thoughts onFederal Judge Recuses Himself From Robinhood Class Action Lawsuit
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I have been an investor with Robinhood since 2015 just recently I changed phone and since they could not send me a code by text they blocked my account with over $3000 dollars in it, and won’t allow me to make any trades or invest in any thing. They ask me to send them my pictures identification and I sent it to them and the next day I was blocked. Now I could of said this was discrimination. Because I’m a black man. But I believe the company got to big for it’s clientail and could not program the amount of investor they got each day.
i tried to buy and was blocked from doing so, no money for the little people
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Please add me. They claim you get 3 free stock but that’s a lie
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