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Robinhood sued for market manipulation

admin by admin
August 13, 2022
in IT news
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Robinhood sued for market manipulation
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Robinhood has to face a trial in the US for market manipulation. This is reported by the Reuters news agency and is based on a ruling by a court in Florida.

The judge gave the green light to a class action lawsuit filed by customers of the trading app as part of the meme Stock rally. Last year, the price of actually ailing stocks such as GameStop or AMC skyrocketed. The reason was a fight between private investors and hedge funds. The latter bet on a falling share price, but the retail investors drove it up with investments coordinated via social media and dealt a sensitive blow to Wall Street.

In the middle of this stock market thriller, Robinhood temporarily suspended the purchase function for the corresponding shares. Private investors sensed market manipulation and collusion with hedge funds. Now the case is being tried in court.

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