Charles Schwab

Retail Investors Fight Back Against Robinhood for Its January 28, 2021, Trading Restrictions on “Meme Stocks,” Such as GameStop, AMC, Koss Corporation, and Express, Inc.

Published on: May 10, 2021 | by Iorio Altamirano

On Thursday, January 28, 2021, Robinhood designated specific stocks “position closing only,” meaning that customers could not purchase additional shares in those stocks. The targeted stocks included GameStop (NYSE: GME), AMC (NYSE: AMC), Blackberry (NYSE: BB), Nokia (NYSE: NOK), Koss Corporation (NYSE: KOSS), and Express, Inc. (NYSE: EXPR).

Robinhood was joined by other online brokers, including TD Ameritrade, Charles Schwab & Co, Inc, Interactive Brokers, LLC, Webull Financial, LLC, E*Trade Securities LLC, who all implemented trading restrictions on targeted securities. These online brokerage firms, including Robinhood, intentionally deprived their customers, without notice, of the ability to use their service in order to slow the growth of the targeted “meme stock” securities.

As the trading restrictions were put into place by the online brokerage firms, including Robinhood, retail investors watched helplessly as the value of their positions plummeted with no potential to remediate the positions given the wrongful sale pressure initiated by Robinhood and others.

Investor Alert: Iorio Altamirano LLP Continues to Investigate Robinhood, Webull, T.D. Ameritrade, Interactive Brokers, Charles Schwab, and Other Brokerage Firms for Market Manipulation and Breach of Contract

Published on: February 1, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims of market manipulation and breach of contract after Robinhood Markets, Webull Financial LLC, T.D. Ameritrade, Charles Schwab, E*Trade Financial Corp., Interactive Brokers Group, and other online brokerage platforms halted the ability of its clients to purchase GameStop (NYSE: GME), AMC (NYSE: AMC), Novavax, Inc. (NASDAQ: NVAX), Express (NYSE: EXPR), Blackberry (NYSE: BB), Bed Bath & Beyond (NASDAQ: BBBY), Koss Corp. (NASDAQ: KOSS) and Nokia (NYSE: NOK) stock on January 28, 2021.

According to reports, after the popular online brokerage firms implemented the trading restrictions, GameStop ($GME) dropped 44%, and AMC ($AMC) lost 57%. The trading restrictions, which appear to have sent the share prices of targeted companies plunging, set off a firestorm of criticism, including Congress members.

New York Attorney General Letitia James released the following statement on January 28, 2021: “We are aware of concerns raised regarding activity on the Robinhood app, including trading related to the GameStop stock. We are reviewing this matter.”

Investor Alert: Iorio Altamirano LLP Investigates Robinhood, T.D. Ameritrade, Charles Schwab, and Other Brokerage Firms for Market Manipulation

Published on: January 28, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims of market manipulation and breach of contract after Robinhood Markets, T.D. Ameritrade, Charles Schwab, and other brokerage firms halted the ability of its clients to purchase GameStop ($GME), AMC ($AMC), Blackberry ($BB), and Nokia ($NOK) stock.

To read our most recent blog post on this investigation, please click here.

The Financial Industry Regulatory Authority, which regulates brokerage firms like Robinhood, T.D. Ameritrade, and Charles Schwab, requires that broker-dealers make every effort to execute a marketable customer order that it receives fully and promptly.