Will Robinhood defend itself in a class action lawsuit?

A federal judge ruled Thursday that Robinhood must defend itself in court against a class action lawsuit related to the online brokerage’s January 2021 decision to halt trading in exploding “meme stocks” like AMC and GameStop, several outlets reported Thursday, though Robinhood vows to “vigorously defend” itself in the case.

Will there be more hearings on Robinhood's trading surge?

Waters said at the time there would be additional hearings on the matter in the future. Robinhood also faces 49 class action lawsuits and three individual actions in federal and state courts relating to the early 2021 trading surge, it revealed in its filing.

What happened to Robinhood?

But Robinhood's rapid rise has come with controversy and a string of litigation: In February 2021, the company was sued by the family of a 20-year-old trader who killed himself after he incorrectly believed he had racked up approximately $730,000 in losses on the app.

How secure is Robinhood?

The stock-trading app lacks "almost universal security measures," according to a class action suit. Robinhood users whose accounts were accessed by unauthorized users are eligible for hundreds of dollars.