Re:Class Action Lawsuit Filed Against Robinhood
by IgorPartola on Thursday January 28, 2021 @03:16PM
(#25948388)
Correct. They blocked buys which would drive the price down, benefitting Citadel, their main source of revenue. I don’t know if that’s why they did this but that’s what the lawsuit is for: to find out. At worst, Robinhood is going to close because of this and their and Citadel’s execs might face prison for manipulating the market.
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Re:Class Action Lawsuit Filed Against Robinhood
by pgt on Thursday January 28, 2021 @03:35PM
(#25948736)
Thanks for confirming! What happens if this kind of thing happens due to an unintentional bug? Do execs go to jail for market manipulation?
Re:Class Action Lawsuit Filed Against Robinhood
by lovecg on Thursday January 28, 2021 @03:58PM
(#25949094)
Not a lawyer, but I imagine it’s similar to how industrial accidents are treated. If there was proper due diligence and precautions, and it was truly an “act of God” sort of thing, that’s understandable. If on the other hand their processes are not up to snuff and they moved a bit too fast and broke one too many things, I imagine they wouldn’t be treated as nicely.