Attorney Alexander G. Cabeceiras Files A Class Action Lawsuit Against Robinhood App in the Southern District of New York.

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Thursday morning, Attorney Alexander G. Cabeceiras filed a class-action lawsuit against RobinhoodApp in the Southern District of New York (NELSON v. ROBINHOOD FINANCIAL LLC et al., 1:21-cv-00777), citing a breach of fiduciary duty and contractual obligations, among other violations.

According to Attorney Cabeceiras, “Robinhood’s mission is to ‘democratize finance for all.’ They have failed. They have purposefully failed this mission and failed their clients in an attempt to—what appears to be—help out their investors and/or potential investors. This is a breach of Robinhood’s fiduciary duty and contractual obligations to the millions of retail investors who relied on their platform.”

It is alleged these retail investors suffered damages as a result of Robinhood’s blocking them from purchasing certain securities in the open market.

Many of the class members are average, everyday people who own stock in one of the companies Robinhood blocked. Regarding the lead plaintiff in the case, Mr. Nelson, Attorney Cabeceiras explains, “Mr. Nelson is a hardworking, blue-collar tradesman who invested on the side to earn extra income. Limiting his ability to buy a security on the open market for absolutely no legitimate reason is unprecedented. Particularly in light of the fact that Robinhood’s competitors continue to allow for the purchasing of GME and other securities.”

As the class action unfolds, politicians and business professionals on both sides of the political aisle can agree that Robinhood App may have breached its fiduciary duty.

Rep. Alexandria Ocasio-Cortez (D-NY) sits on the House Financial Committee. She tweeted her concern regarding Robinhood’s actions, “This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary.”

Even Senator Ted Cruz (R-TX) tweeted his support for a hearing into the matter, “Fully Agree.”

The Derek Smith Law Group looks forward to helping investors who feel scammed, violated, and harmed by Robinhood’s actions. “We look forward to litigating this matter. We have hundreds of individuals reaching out to be added to this suit. We will likely amend the Complaint in the coming days to add new individuals and, potentially, new causes of action.”

To join the Robinhood class action, please fill out our form or contact us at 800.807.2209.

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