NEW YORK--(BUSINESS WIRE)--An arbitration panel with the Financial Industry Regulatory Authority (FINRA) awarded compensatory damages to a retail investor in a case against Robinhood involving the January 2021 trading restrictions on “meme stocks.”
Iorio Altamirano LLP, a leading securities arbitration law firm, represented the investor and secured the groundbreaking arbitration award. The award is notable because it is the first such win for retail investors in the country in any forum against Robinhood over its decision to restrict trading in certain stocks on January 28, 2021. The targeted stocks included GameStop (GME), Koss (KOSS), Express (EXPR), and AMC Entertainment Holdings (AMC), among others. After Robinhood implemented the trading restrictions, the share prices of these companies plummeted.
The investor, a 27-year-old truck driver, invested in shares of KOSS and EXPR and suffered investment losses as a result of Robinhood’s unilateral decision to restrict trading. Iorio Altamirano LLP filed a FINRA arbitration claim on his behalf. At the arbitration hearing, August M. Iorio and Jorge Altamirano represented the investor.
The nearly $30,000 award included compensatory damages, interest, and all the forum fees assessed to Robinhood.
Iorio Altamirano LLP has been investigating allegations against Robinhood Financial LLC (“Robinhood”) since last year. The firm currently represents Robinhood customers in filing securities arbitration claims over its implementation of the trading restrictions.
“We believed in our case theory and are pleased that we were able to persuade an arbitrator to hold Robinhood accountable for its conduct. Our client is gratified that the arbitrator found Robinhood liable for his investment losses,” said Iorio.
“This award is a monumental and historic win for retail investors – particularly younger, self-directed investors – like those who use Robinhood’s platform and which the firm targeted to fuel its growth. On a broader scale, the award offers hope to the thousands of Robinhood users who may now see a potential road to recovering their losses and offers encouraging news that arbitration panels are willing to hold online broker-dealers accountable,” said Altamirano.
Former and current Robinhood customers who held the targeted securities on January 27, 2021, are encouraged to complete the following form for a free and confidential consultation. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP.
Robinhood customers should contact Iorio Altamirano LLP for a free and confidential consultation. Iorio Altamirano LLP can review and analyze potential claims and advise individuals of their legal rights without obligation or cost. To set up an evaluation, contact securities arbitration attorneys August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, you may call the firm toll-free at (855) 430-4010.
About Iorio Altamirano LLP:
Iorio Altamirano LLP is a national securities litigation law firm based in New York, NY. The law firm pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
