A truck driver from the US might have set a precedent for wronged buyers
The US Monetary Business Regulatory Authority (FINRA) dominated for commission-free buying and selling platform Robinhood to pay a retail investor who misplaced cash after the platform halted meme-stock shopping for final yr.
On January 6, a FINRA arbitrator discovered Robinhood accountable for $ 29,460.77 in compensatory damages to Jose Batista, a truck driver from the state of Connecticut – and retail investor. Batista filed a grievance with FINRA in Might final yr, claiming that he misplaced cash on investments attributable to Robinhood’s determination to halt buying and selling on a number of meme shares in 2021.
Between January 28 and February four final yr, Robinhood restricted customers from shopping for sure shares amid a social media-fueled rally, and curbed the variety of shares buyers may purchase in a few of the shares. When the restrictions and limits have been lifted, many shares misplaced a lot of their worth, enraging buyers and sparking a wave of lawsuits accusing Robinhood of conspiring to set off a sell-off.
Learn extra
Main investing platform hit with information breach, tens of millions of customers affected
Robinhood dismissed the accusations and argued that its strikes have been publicly introduced and justified.
The ruling in Batista’s case is the primary during which Robinhood has needed to pay a retail investor for its buying and selling restrictions – and a few say it may set a precedent for different merchants suing the $ 13 billion buying and selling platform.
“FINRA confirmed right here that they have been prepared to adjudicate a case on the deserves,” Batista’s lawyer, Jorge Altamirano, informed Market Watch, including that “this opens the door for different buyers to revisit that day [in January] and perhaps take motion.”
READ MORE: Robinhood CEO claims to be hiding in ‘undisclosed location,’ supposedly going through DEATH THREATS over limiting ‘meme inventory’ buying and selling
Seven different retail buyers have filed complaints with FINRA in opposition to Robinhood concerning the meme-stock sell-off, however Batista’s case is the one profitable one to date.
For extra tales on financial system & finance go to RT’s enterprise part
