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Class-action suit filed against Robinhood app for blocking trading of GameStop, other stocks

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A class-action lawsuit was filed Thursday against the stock-trading app Robinhood for preventing its users from freely buying stock in GameStop amid the ongoing situation with the declining video game retailer and its dramatically changing stock price.

The complaint—filed in the U.S. District Court of the Southern District of New York—claims that, because “Robinhood purposefully, willfully, and knowingly removing the stock ‘GME’ [GameStop] from its trading platform in the midst of an unprecedented stock rise,” the online brokerage firm “thereby deprived retail investors of the ability to invest in the open-market and manipulating the open-market.”

As part of the lawsuit, the plaintiffs are requesting an immediate injunction mandating Robinhood to reinstate GME on its trading platform.

At the time of publication, Robinhood has not issued a statement about the lawsuit.

MORE ON ROBINHOOD, GAMESTOP: ‘You almost had me murdered’: AOC doesn’t want Cruz to join bipartisan push to investigate Robinhood

Earlier on Thursday, Robinhood prevented users from purchasing new stock in GameStop, AMC, and Blackberry but has allowed users to close out existing securities.

“In light of current market volatility, we are restricting transactions for certain securities to position closing only, including $AMC and $GME,” the company tweeted Thursday, with a link to a statement. While the tweet at the time of publication has a little of 6,000 likes, that number is astronomically dwarfed by the 58,000 comments and the roughly 25,000 retweets.

Earlier this week, other trading platforms like TD Ameritrade and Charles Schwab restricted the trading of shares such as GameStop and AMC, which has also been struggling to stay afloat amid shifts in the film industry toward streaming services.

To briefly explain the situation, GameStop’s stock price has shot up dramatically over the course of more than a week due to users on the Reddit community r/WallStreetBets encouraging other individual investors on the subreddit to purchase stock in the fledgling video game vendor through equities and calls.

RELATED: WH press secretary replies to question about stock market concerns: ‘We have the first female treasury secretary’

Notably, politicians on both extremes of the ideological spectrum have come out in support of Congress looking into Robinhood restricting trading for its users, saying that it’s hypocritical that hedge funds can still trade as they wish, such as Rep. Alexandria Ocasio-Cortez (D-N.Y.) and Sen. Ted Cruz (R-TX).

MORE ON ROBINHOOD: ‘You almost had me murdered’: AOC doesn’t want Cruz to join bipartisan push to investigate Robinhood

You can follow Douglas Braff on Twitter @Douglas_P_Braff.

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Biden’s 60 Minutes Interview Horrifies White House: ‘Does NOT Reflect the OFFICIAL Position’

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Uh oh. Someone let President Joe Biden speak by himself again and damage control immediately ensued. President Joe Biden’s “60 Minutes” interview which aired on CBS Sunday was 60 minutes of pure torture for viewers and 60 minutes of pure angst for the White House; everyone but the president himself.

60 Minutes’ official Twitter account publicly called out the President’s answers with an embarrassing statement that his own administration was in disagreement with him:

“President Biden tells 60 Minutes that U.S. men and women would defend Taiwan in the vent of a Chinese invasion. However, after our interview, a White House official told us that U.S. policy on Taiwan has not changed.”

CBS’ Scott Pelley also discussed inflation; an issue drastically affecting the welfare and wellbeing of families. Biden deflected with zero sympathy:

As for President Biden’s son Joe, he is sticking with the narrative that Hunter is the “smartest” person he knows and that “there’s not a single thing that I’ve observed at all that would affect me or the United States relative to my son Hunter.”

Biden also said that while the “proof of the pudding is in the eating” in response to being asked if he is fit to be President, Biden did not commit to saying whether or not he will run for re-election. His “intention” is to run again, “but that’s just intention” he said. “Is it a firm decision that I run again? That remains to be seen.”

 

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