The parents of Alex Kearns, 20, who died by suicide last year, filed a lawsuit against Robinhood. Kearns killed himself after he saw a $730,000 negative balance on his Robinhood app profile. The negative balance was a bug on the Robinhood app, and Kearns’ parents are suing the online trading platform over its “reckless conduct that directly and proximately caused Kearns’ death”.
Alex studied business in university and had gained interest in financial markets and investment since then. However, his heart-breaking story came to an end in June 2020 — 13 hours after he saw a $730,000 negative balance.
Kearns’ parents filed the complaint against Robinhood on Monday in Santa Clara County, California — seeking “unspecified damages for wrongful death, negligent infliction of emotional distress, and reckless business practices.”
Alex Kearns left a note before suicide
The 20 years old trader left a note to his family where he accused Robinhood of allowing that much risk. Kearns said in the note that the puts he ordered and the shares sold “should have canceled out” but at that moment of trading, he had “no clue” what was happening.