![]() Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. ![]() US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account The Financial Industrial Regulatory Authority (FINRA) accused Robinhood of “systemic supervisory failures” and giving customers “false or misleading information.” FINRA said that since late 2017, Robinhood “failed to exercise due diligence” before approving customers to trade options. Kearns’ death was cited by Wall Street’s self-regulator in a record-setting penalty imposed on Robinhood on Wednesday for harming investors. Robinhood executives have previously said they were “devastated” by the tragedy and pointed to efforts made to improve the platform’s options trading, educational efforts and customer service. “This matter was dismissed with prejudice following a settlement between the parties,” Robinhood said in its S-1 filing for its initial public offering.Ĭourt filings indicate the settlement was reached in late May and the case was permanently dismissed on June 21. The lawsuit accused Robinhood of wrongful death, negligent infliction of emotional stress and unfair business practices. Kearns took his own life in June 2020 after mistakenly believing he owed $730,000 and his desperate attempts to get in touch with Robinhood went unanswered, according to his family. Robinhood slapped with biggest-ever penalty by Wall Street regulator ![]() Robinhood said last Thursday it removed temporary trading restrictions on all stocks, including GameStop Corp and AMC Entertainment Holdings Inc., according to Reuters.Vlad Tenev, chief executive officer and co-founder of Robinhood Markets Inc., speaks virtually during a House Financial Services Committee hearing on a laptop computer in Tiskilwa, Illinois, U.S., on Thursday, Feb. Robinhood was recently thrust into the limelight when the company made the decision to restrict trading in several highly volatile stocks after members of the Reddit group WallStreetBets banded together to squeeze short-sellers. "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 Kearns held, according to the lawsuit.Īfter not being able to speak to anyone from Robinhood, the lawsuit alleged that he became fearful over the financial obligation, which "resulted in a highly distressed mental condition in Alex, an uncontrollable impulse to commit suicide as the only option he could see." The response came after he sent multiple emails to Robinhood's customer support, but only received auto-generated replies, the lawsuit alleged. the following morning saying he needed to deposit more than $178,000 within seven days to begin to address his negative balance, the lawsuit added. ![]() Kearns received emails from Robinhood informing him that his account was restricted on June 11 and that he was required to buy $700,000 in shares as a result of an options trade, which left his account with a negative balance of $730,000, according to the lawsuit.ĭespite being under the understanding he would be limited to a maximum loss of less than $10,000, Kearns then got an email from Robinhood around 3:30 a.m. Kearns' family claimed the popular stock-trading platform’s business practices "directly" led to their son’s death, with his mother and father alleging that Robinhood targeted young and inexperienced customers.
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