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Robinhood Must Face Market Manipulation Claims Over Meme Trading

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Robinhood Markets Inc. must face market manipulation claims arising from the January 2021 meme-stock frenzy, a judge ruled.

A Miami federal judge dismissed some allegations against the platform, but is allowing others in a proposed investor class-action lawsuit to move forward.

U.S. District Judge Cecilia Altonaga said in her ruling Thursday that the case raises “interesting legal questions, convoluted by the novelty of Robinhood’s platform, but at the end of the day, plaintiffs’ market manipulation claims clear the particularized threshold.”

The ruling was reported earlier by Reuters.


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