The Lawsuit further explains: “Tragically, Robinhood’s communications were completely misleading, because, in reality, Alex did not owe any money; he held options in his account that more than covered his obligation, and the massive negative balance would have been erased by the exercise and settlement of the options Alex held”
“Alex Kearns’ death devastated us. Since June, we’ve made improvements to our options offering.” A spokesperson for Robinhood said.
In conclusion, Robinhood will not only be facing a lawsuit by the Kearns family. The online brokerage is also facing lawsuits from its angry clients. Robinhood users filed lawsuits against the company. Traders accused the company of advantaging hedge funds and restricting trading in GameStop and AMC stocks. Robinhood restricted trading in the stocks while the prices were soaring.
Robinhood is planning for an IPO in 2021.
” If you or someone you know is having thoughts of suicide. Please contact the National Suicide Prevention Lifeline at 1-800-273-TALK (8255)] “
