Girard Bengali, APC, a leading Los Angeles securities litigation law firm, has announced that it is investigating claims on behalf of Robinhood users that were affected and suffered losses as a result of investing in Gamestop or AMC through the Robinhood brokerage platform.
Due to recent market events involving $GME, $AMC and other companies generated virtually unprecedented price volatility in these stocks, several online brokerages including Robinhood experienced service interruptions on January 27 and 28, 2021. On January 28, Robinhood halted some trading on those names, potentially resulting in huge losses for some of its customers.
“The questionable conduct of the app-based brokerage Robinhood has been well-documented by this firm,” said Robert Girard, partner at Girard Bengali, APC. “In the past two months alone, Robinhood has paid $65 million to settle SEC charges about how it makes money, and is under investigation by the Massachusetts Securities Division for its failure to protect customer assets and subjecting customers to unnecessary trading risks. The fact that novice investors have the ability to buy and sell complex financial products like options as easily as they can swipe and tap to get an Uber raises serious questions about Robinhood’s compliance with state and federal investor protection laws.”
Girard Bengali, APC has helped investors recover millions of dollars lost as a result of fraudulent schemes, misconduct and mismanagement by financial firms of all sizes. If you are a Robinhood user who invested in Gamestop or AMC and lost money, contact an experienced securities litigation attorney today.