Tuesday, April 23, 2024

Robinhood’s Super Bowl ad won’t let class action lawsuits spoil the mood

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On Thursday, a user filed a class action lawsuit against the company, claiming it was restricting trading in GameStop shares “willfully and knowingly to manipulate the market.” As of Friday, thousands of other traders joined the pursuit. Since that repository, users across the United States have introduced more than 30 class actions against Robinhood. Lawmakers on both sides of the aisle have called Congress to investigate the app’s decision to limit trading.

Robinhood, who has since lifted some of the restrictions, has denied the claims of the first trial. It city an increase in the capital deposit requirements of clearing houses as a reason to limit trading in these shares. The company has raised more than $ 3.4 billion in investments in the last two weeks to help it avoid placing restrictions on transactions in the midst of a surge in user numbers.

The announcement, unsurprisingly, does not refer to the controversy of the past week or so – it is likely that it was completed before any upheaval. The company said the app shines a light on people who invest “time in themselves and in the people and things they love.” Christina Smedley, Robinhood Marketing Director, said CNBC that the ad helps explain the app to newcomers. “It felt like it was a great step for us to remind people of what we stand for and to remind people why the company was created in the first place,” she said.


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