Lead Plaintiff Deadline: 04/19/2021
SUMMARY OF CASE:
A securities class action has been filed against GameStop Corp. (GME) on behalf of all purchasers of GameStop common stock between January 22, 2021 through February 2, 2021. This case has been filed in the USDC – Massachusetts.
The Complaint alleges that on Jan. 28, 2021, online brokerages including Robinhood, Interactive Brokers, and Webull restricted new purchases of certain high-flying stocks, including GME, AMC and BB, as well as dramatically increased margin limits on long stock positions. Although the brokerages cited “market volatility” as the reason, media outlets have reported that the restrictions were imposed to protect certain Wall Street hedge funds that had taken massive short positions in these stocks.
The Complaint alleges that retail investors using these brokers’ platforms were unable to buy shares, thereby depressing trade volume and causing the stock price of these companies to plummet. As a result of this artificial manipulation, certain investors who traded on January 28th were damaged.