A U.S. federal court on Thursday dismissed a lawsuit accusing Robinhood Markets Inc. of violating state laws by restricting trades on so-called meme stocks during a January 2021 rally, a move that retail traders allege resulted in billions in losses.
Chief Judge Cecilia Altonaga of the federal court in Miami ruled that retail investors cannot pursue negligence and breach of fiduciary duty claims against the commission-free brokerage, citing Robinhood’s customer agreement which allowed it to restrict trading.
