Brendon Nelson, a Robinhood user, has filed a suit against the online brokerage firm by accusing Robinhood of denying access to its users to buy shares of GameStop (“GME”). The lawsuit seeks class-action status against Robinhood.
The lawsuit has stated the Robinhood abruptly and purposely deprived their customers of buying GME. It alleges that Robinhood’s actions were done knowingly to manipulate the markets and help out individuals or financial institutions that were not customers of Robinhood.
The lawsuit initially sought an immediate reinstatement of GME stock buying power ability to the trading platform and attorney and court fees.
Immediately after the suit was filed, many investors and users of Robinhood have joined the class action suit. Many of them used an online service named Donotpay.com to automatically add themselves to the lawsuit.
This lawsuit was filed after Robinhood had temporarily restricted the trading of GME on its platform. This action led to a severe fall in the prices of the GME stock.
Many users of Robinhood and other platforms were enraged by this, as they wanted to jump in on the GME investment frenzy that had been fueled by the sub-Reddit community /WallStreetBets.