It seems the Robinhood app has found itself in scorching hot water.
The popular stock trading app was trending today after it started restricting users from trading stocks in GameStop, AMC and more. The stocks that were restricted were skyrocketing in the market, which led to Robinhood restricting users from trading their shares. The prices of these stocks immediately tumbled after the news broke.
In addition to the prices falling, the Robinhood app now finds itself in immense trouble as a class-action lawsuit has been filed against the company. The lawsuit alleges that Robinhood manipulated the open market by purposefully removing the $GME stock from it’s trading platform. The company restricted trades and the ability to open up new shares in the rising stocks. An additional lawsuit was filed in Chicago due to the same restrictions on $AMC.
Robinhood has yet to respond to the backlash or lawsuits pending against them.