Robinhood Nears Settlement in Lawsuit Over 2021 Meme Stock Controversy

Robinhood is in the final stages of settling a lawsuit with investors who sued the trading platform for its actions during the 2021 meme stock frenzy, particularly its decision to halt trading on certain stocks, including GameStop. According to a filing to a Miami federal court on May 28, Robinhood's lawyers stated that they are "in the process of finalising the settlement" with the investor group, expecting the settlement and dismissal within the next two weeks. The lawsuit, led by Blue Laine-Beveridge and other investors, alleged that Robinhood's actions unlawfully manipulated market prices and resulted in significant losses for investors. The settlement comes after United States District Judge Cecilia Altonaga denied the investors' bid for a new motion for class certification in April. The lawsuit against Robinhood is part of a broader legal battle over the platform's handling of meme stocks, such as GameStop and AMC, during the 2021 trading frenzy driven by social media hype.