Item: Iorio Altamirano LLP
Rating: 5
Author: Christine L.

Robinhood: Trading Restrictions

Iorio Altamirano LLP Secures Ground Breaking Arbitration Award

January 7, 2022 - Iorio Altamirano LLP is proud to announce that we have secured a groundbreaking arbitration award for a retail investor against Robinhood. The award is notable because it is the first win by a retail investor against Robinhood over its decision to restrict the trading of certain "meme stocks" on January 28, 2021. This award is a monumental and historic win for retail investors.

The investor, a 27-year-old truck driver, invested in shares of KOSS and EXPR late in the day on January 27, 2021. He suffered significant investment losses when Robinhood prevented its users from purchasing new positions pre-market on January 28, 2021, and the share prices of the securities tumbled. Iorio Altamirano LLP filed a FINRA arbitration claim on his behalf. New York securities arbitration attorneys August M. Iorio and Jorge Altamirano represented the investor. On January 5, 2022, the arbitrator awarded the investor compensatory damages and interest and also assessed all forum fees to Robinhood.

Iorio Altamirano LLP Investigating Robinhood for January 2021 Trading Restrictions

Iorio Altamirano LLP, a leading securities arbitration law firm, is investigating claims on behalf of Robinhood Financial LLC (“Robinhood”) customers for the firm’s decision to place trading restrictions on certain securities pre-market opening on January 28, 2021.

On January 28, 2021, Robinhood restricted its customers from purchasing shares of publicly traded companies, including GameStop, AMC, Nokia, BlackBerry, Bed Bath & Beyond, Naked Brands, Koss, and Express. Robinhood used the term “position closing only” or “PCO” to describe its trading restrictions. The moment Robinhood implemented the PCO trade restrictions, the share prices of many of these companies plummeted pre-market and continued to fall after the market opened on January 28, 2021.

Upon information and belief, Robinhood implemented the PCO trade restrictions because the firm was negligent in its liquidity management practices in the days and weeks leading up to January 28, 2021.

Robinhood had the tools and resources to monitor its risk and estimate potential clearing fund requirements.

The firm’s failure to implement effective funding and liquidity risk management practices led to its inability to meet its obligations during a period of volatility, which ultimately led to its decision to cut off market access to customers.

Current and former Robinhood customers who held the targeted securities before Robinhood applied the trade restrictions on January 28, 2021, are encouraged to complete the following form for a free and confidential consultation. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP.

Iorio Altamirano LLP currently represents Robinhood traders in filing securities arbitration claims against the firm for placing trading restrictions on certain securities in January 2021.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a national securities litigation law firm based in New York, NY. The law firm pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.

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★★★★★

August Iorio is a wonderful, very competent attorney. He helped me through a very complicated financial situation to a result that benefitted me greatly. He is responsive, efficient, and very accommodating to my personal situation. I highly recommend him. Christine L.

I was impressed with August Iorio's directness and clarity in explaining the claim process and how it might work out. I also appreciated his promptness in getting back to me when I had questions or other concerns. Iorio Altamirano LLP is very good at what it does. Art H.

August Iorio was the lead on our case. His professional demeanor, partnered with his responsiveness to our questions, suggestions, and ideas made us feel as if we were a team with a common goal. He always kept us updated and informed and gave us realistic expectations which resulted in a timely, fair, and suitable settlement. We highly recommend the law firm of Iorio Altamirano LLP. EB & SB

August, I truly appreciate all you have done for me! Thank you. Carol P.

We had a wonderful experience with Mr. Jorge Altamirano, who is an excellent and competent lawyer. He took care of our case with high effectiveness and professionalism. Mr. Altamirano is always available to answer any questions from his clients and always provided us the appropriate follow-up in our case. It was an honor to have his professional services. Ana & Rolando M.

My experience in the past with attorney Jorge Altamirano, was excellent. He was highly competitive and professional. He was attentive, communicative, respectful, and kind from beginning to the end of resolution of my case. One of the most impressive attributes of this gentleman was his empathetic demeanor towards me, his calmness throughout all the process of my case. Dr. Mayra R.

The professional and outstanding guidance and assistance that Jorge Altamirano provided during my case was a key element towards a favorable negotiation. He was always vigilant of the case deadlines. I would work with him again in the future. Johnny M.

In our case, Mr. Altamirano showed integrity and professionalism, which without a doubt will help your future outcome. Ciso C.

Mr. Altamirano is very knowledgeable, responsible and reliable. I am very satisfied and grateful with the outcome of my case. Elsie D.

People who are the victims of broker fraud have to go through a complicated arbitration process which requires them to trust their attorney and take a lot on faith. August Iorio worked with me and my wife navigate the process, helping us get all the information his firm needed for what turned out to be a successful outcome. He was understanding and professional every time we dealt with his firm. Mitchell & Irene F.

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