Robinhood GameStop Restrictions Multidistrict Litigation To Be Led by Rosen Law Firm

Robinhood Stock Restriction Losses Multidistrict Litigation Overview:

• Why: Rosen Law Firm PA represents the lead plaintiff, Blue Laine-Beveridge, who lost a great sum due to Robinhood’s stock restrictions.
• Who: Rosen Law Firm PA will lead a multidistrict litigation (MDL) against Robinhood.
• Where: The MDL was filed in Florida federal court

Multidistrict litigation against Robinhood will move forward in Florida with Rosen Law Firm PA at the helm. The MDL centralizes more than 55 lawsuits alleging the stock-trading app lost its customers more than $10 billion by restricting trading on certain stocks like GameStop in January. 

US District Judge Cecilia M. Altonaga also appointed Robinhood user Blue Laine-Beveridge as lead plaintiff, ruling that he suffered great financial harm and satisfies the typicality and adequacy requirements for a class action lawsuit as he is an “experienced investor with a large financial interest in the action.” Laine-Beveridge claims he lost almost $122,400 from Robinhood’s trading restrictions. 

Three Robinhood Users Vie for Lead Plaintiff 

Laine-Beveridge was not the only complainant asking to be recognized as the MDL lead plaintiff. Abe Kurdi and Teodoro Russell Pueyrredon, represented by Bursor & Fisher, also say that together they lost either $8,400 or $16,240 from Robinhood’s stock restrictions. 

Kurdi and Pueyrredon argued that since Laine-Beveridge made a profit from his AMC Entertainment Holdings investments, he did not qualify for the Class, would not adequately protect the interests of the Class, and lacked standing to represent other AMC stock purchasers.

Judge Altonaga dismissed these arguments, ruling that Kurdi and Pueyrredon failed to prove that measures of loss related to “each individual affected security or by each separate transaction.” She ruled that despite his AMC gains, Laine-Beveridge suffered a net loss, qualifying him as a class member. Further, he lost “significantly more than Kurdi and Pueyrredon combined,” giving him “substantial incentive to vigorously litigate this action.”

Did you get hit by Robinhood’s stock restrictions earlier this year? Tell us about it in the comments below!

The plaintiff is represented by Laurence M. Rosen, Phillip Kim, Michael Cohen, and Erica Stone of Rosen Law Firm PA.

The Robinhood Stock Restriction Losses Multidistrict Litigation is In Re: January 2021 Short Squeeze Trading Litigation, Case No. 1:21-md-02989, in the US District Court for the Southern District of Florida. 

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