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.”
On January 29, 2021, securities regulators, including the Securities and Exchange Commission, indicated that they would closely review the actions of some brokerage firms, which restrict investors’ ability to purchase certain securities. The securities regulators said they would look for abusive or manipulative trading activity prohibited by federal securities laws.
The Financial Industry Regulatory Authority, which regulates brokerage firms like Robinhood, requires that broker-dealers make every effort to execute a marketable customer order that it receives fully and promptly.
Iorio Altamirano LLP is especially interested in speaking with investors that have:
- purchased and held GME, AMC, NVAX, EXPR, BB, BBBY, KOSS, or NOK before Robinhood and other popular trading platforms restricted transactions on January 28, 2021;
- subsequently sold their positions; and
- suffered losses of $25,000 or more.
Iorio Altamirano LLP is also interested in speaking with investors who have not sold their positions but have suffered losses of more than $50,000.
If you have suffered financial losses, please fill out the following form for a free and confidential consultation. You may be entitled to compensation without payment of any out-of-pocket fees or costs through a contingency fee arrangement.
Do not rely on any pending or future class action filings. Class actions can be dismissed for various reasons, and even if there is a recovery someday, class members often only receive pennies on the dollar.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue individual FINRA arbitration claims nationwide on behalf of investors to recover financial losses from brokerage firms’ wrongful conduct.