Read Blog
related attorneys
Related practice area
Robinhood is still in hot water for restricting purchases of “hot stocks,” including GameStop and AMC, in January of 2021. The company already faces a class action lawsuit that consolidates claims filed by dozens of Robinhood users who lost money when other investors were prevented from purchasing stock shares. The company is trying everything to defeat legal action, including filing a Motion to Seal their internal documents as “confidential.”
The Court recently denied this motion, allowing plaintiffs to lift all redactions in the Robinhood documents that were ordered to be made available by the Court on June 3. The information that was previously unavailable shows that despite knowing how ill-equipped the company was to handle the surge in trading activity in late January, they aggressively marketed to new users with a belief that they “were too big” to be shut down.
The Ferraro Law Firm filed an amended class action complaint on September 21, 2021 on behalf of all plaintiffs. The complaint includes new excerpts from the documents which shows just how reckless the company was during the week of January 28.
Robinhood CEO Calls for “Ramp-Up of Marketing” Despite Being Undercapitalized by Billions of Dollars
A screenshot from an internal chat that occurred on January 28 between Robinhood Chief Operating Officer, David Dusseault, and another employee revealed a complete disregard for the Robinhood users their actions would ultimately hurt.
Referring to inquiries from the National Securities Clearing Corporation (NSCC) about deposit requirements intended to protect traders from defaults, Dusseault said confidently that Robinhood was “to [sic] big for them to actually shut us down.”
Dusseault was not the only leader who did not appear to be concerned about Robinhood’s inability to handle the sudden increase in trading. That same day, Robinhood’s CEO asked for a “ramp-up of marketing.”
These decisions weren’t made out of ignorance. Robinhood knew they were facing unprecedented trading activity, as another internal communication from that week stated, “Today was a high volume day, but stories about Reddit/WSB and stocks other than GME are heating up. We should not rule out a bigger day than today this week.”
Reckless Robinhood Actions Led to January Trading Restrictions
Robinhood leadership made the decision to lean into the wave of interest from Reddit users and others to purchase stock in GameStop, AMC, and similar hot stocks by marketing to attract even more users. They made this decision despite knowing that their company did not have the capital to adequately support these trades and would risk hurting investors in the process.
The amended complaint underscored the reckless irresponsibility of Robinhood’s decisions by stating that it was, “as if the Titanic had continued selling tickets even after hitting the iceberg.”
“Robinhood kept allowing (and encouraging) new customers to join and place further strain on its platform even after it was dangerously unstable,” the complaint alleges.
Their irresponsible decisions eventually caused Robinhood to artificially depress the value of AMC, Nokia, GameStop, and similar stocks by restricting stock purchases.
Yet in the months after these trade restrictions were imposed, causing many Robinhood users to lose money, the company claimed that the sudden interest in GameStop stock and others created “unprecedented market volatility” over which they had no control over.
Market volatility is not only always to be expected, but it was also made much worse by Robinhood’s aggressive marketing throughout that fateful week.
The Ferraro Law Firm is Helping Investors Hold Robinhood Accountable
Natalia Salas, Partner at The Ferraro Law Firm, is currently Lead Counsel over the class action claims against Robinhood that is proceeding in the Southern District of Florida. She is joined by James L. Ferraro, James L. Ferraro, Jr., Sean A. Burstyn, Daniel J. Di Matteo, and Angelica Novick.
The Robinhood case is just one example of how our law firm stands up for small investors and consumers against large corporations who use their size and wealth to take advantage of them. For all of the recent updates on the Robinhood litigation, read our latest blog posts.
Featured Articles
our attorneys
James L. Ferraro
Founding Shareholder & President
Marc P. Kunen
Shareholder
James L. Ferraro, Jr.
Shareholder
Andrew J. Ferraro
Litigation Attorney
Angelica L. Novick
Partner
Daniel J. Di Matteo
Partner
The Hon. Leslie Rothenberg (Ret.)
Partner
Ignacio J. Segurola
Litigation Attorney
Client Experiences
When individuals and families face the challenges of mesothelioma and asbestos exposure—coping with complex treatments, escalating costs, and emotional strain—they turn to Ferraro Law for clarity, guidance, and steadfast support. Through meticulous case preparation, empathetic counsel, and strategic representation, our attorneys build compelling cases that secure meaningful settlements to cover medical expenses, provide financial relief, and offer a path toward stability during difficult times.
Stephanie and all the folks at the Ferraro Law Firm were professional and excellent in handling my case. Even more importantly they were very kind and treated me like family. I would wholeheartedly recommend them to anyone. Thank Y’all so much.
Matthew F.
Working with Daniel J. Di Matteo, Attorney and Partner at The Ferraro Law Firm was and is a life-changing forever experience. He is committed to a level of professionalism and attention to detail that is at the 100th percentile. Daniel handled everything with calmness, sensitivity and support that I needed through this difficult time. He always protected me and had my best interests. I am completely satisfied with the results.
If you need an attorney that operates at the highest level, that attorney is Daniel J. Di Matteo.
Harvey W.
Ferraro Law is wonderful and I am forever grateful to them. My attorney Daniel Di Matteo fought like a tiger for me against a multibillion dollar corporation and obtained a substantial settlement for me. This settlement is life changing for me. If you need an attorney call Ferraro Law and if you’re lucky Daniel will take your case.
Florence T.
Not too long ago I picked up the phone and called the Ferraro Law Firm not quite knowing what to expect. From the moment I reached out, the team made me feel heard and taken care of — not just like another case walking through the door.
Nikki Hurtado was my first primary contact. After speaking with her I knew that I had picked the right firm. She walked me through the process in plain understandable language. Even after numerous calls, she never made me feel like I was asking too many questions, and I always felt confident that my case was in expert hands.
My litigator was Daniel Di Matteo. If there was ever anyone that you would want by your side in a court of law, it would be him. He was everything that you would want in an attorney—calm, cool, always prepared, communicative and most importantly–experienced. He knew everything that was going to happen before it occurred but was prepared for any contingency. He is a fantastic attorney.
What really set them apart was their communication. I was kept informed at every stage — no chasing down updates, no wondering what was happening with my case. Calls and emails were returned promptly, and they proactively reached out whenever there was a development.
The professionalism of the entire team — from the attorneys to the support staff — was exceptional. Everyone I interacted with was kind, compassionate, and genuinely invested in my well-being, not just the outcome of my case.
And the outcome? Better than I could have hoped for. They fought hard on my behalf and secured a result that truly reflected the impact this injury had on my life.
You could ask for no better firm or attorney.
Keeth K.
Free Case Consultation
Our Trial and Appellate Attorneys Are Ready to Fight for You
If you were seriously injured, remember that it is crucial to choose the right law firm to represent your interests. We have been doing this for more than 40 years, and have the resources you need to challenge any opponent!
