Robinhood defeats meme stock frenzy appeal

<img width="250" height="151" src="https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-250×151.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="Robinhood defeats meme stock frenzy appeal" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-250×151.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-700×422.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-120×72.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood-500×301.jpg 500w, https://www.leaprate.com/wp-content/uploads/2022/04/Robinhood.jpg 880w" sizes="(max-width: 250px) 100vw, 250px" /><p>At the time, customers owning stocks such as AMC Entertainment, the previous Bed Bath &amp; Beyond, and Gamestop, claim they lost money because Robinhood prohibited these stock buys as social media activities caused prices to skyrocket. Other stockholders claimed the restrictions caused price drops. Investors using online stages such as Twitter and Wall Street Bets initiated this so-called avalanche.</p>
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<p>Despite lengthy legal battles, the 11^th US Circuit Court of Appeals cast a 3-0 decision in favour of Robin Hood. It pointed out that the standard customer agreement clearly authorises restrictions and does not create a notion that the trading and investment platform would accept all trade offers.</p>
<p>Furthermore, the court dismissed claims of negligence causing investors to lose money or that Robinhood failed to ensure ‘mission-critical systems’ were functional. These decisions upheld the November 2021 ruling of the Miami Federal Court.</p>
<div><img aria-describedby="caption-attachment-450171" decoding="async" class="wp-image-450171" src="https://www.leaprate.com/wp-content/uploads/2023/08/New-Project.jpg" alt="" width="98" height="98" srcset="https://www.leaprate.com/wp-content/uploads/2023/08/New-Project.jpg 320w, https://www.leaprate.com/wp-content/uploads/2023/08/New-Project-250×250.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/08/New-Project-150×150.jpg 150w, https://www.leaprate.com/wp-content/uploads/2023/08/New-Project-120×120.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/08/New-Project-245×245.jpg 245w" sizes="(max-width: 98px) 100vw, 98px" /><p>Britt Grant Source: Federalist Society</p></div>
<p><a href="https://www.leaprate.com/forex/brokers/robinhood-enters-an-agreement-to-acquire-credit-card-firm-x1-for-95-million/" target="_blank" rel="noopener">Robinhood</a>, nor its lawyers, nor the lawyers for the plaintiffs publicly commented on the ruling. Circuit Judge Britt Grant wrote:</p>
<blockquote><p>When Robinhood restricted its customers&#8217; ability to buy meme stocks, it took a sizable – and perhaps justifiable – hit in the court of public opinion. But in this court, Robinhood is only accountable for specific legal duties.</p></blockquote>
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