Their TOS says they can take “reasonable” actions to “protect” users. It’s nebulous enough they felt they could get away with it. But there is a lawsuit now so we’ll see for sure that the rich protect each other when the plebs get uppity.
Forcing their customers to lose money by driving the price of a stock down by forcibly liquidating their users' shares can't be interpreted as "protecting" those users by any reasonable person. I'm having a hard time understanding how it isn't blatant securities fraud. The discovery process of a lawsuit will allow investors to find out whether Robin Hood and other brokerages or their executives had any financial interest in manipulating the price of these securities.
The do, the company that owns RH also owns Melvin. Melvin is the hedge fund that was facing down bankruptcy due to Reddit’s antics.
Oh shit. That's a pretty slam dunk case. Although even if they loose, they won't have the money to cover the damages. The company will go bankrupt and all the jews running it will keep their ill-gotten gains.
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