An Illinois man is alleging that his funds are depleting after investing in Blackberry shares due to Robinhood blocking stock trading, and he believes it’s to protect “Wall Street hedge fund bros.”
Richard Joseph Gatz is going after the financial services firm after they restricted people from purchasing shares from companies at the core of the ongoing fight between Reddit investors and managers of hedge funds, including GameStop, AMC, BlackBerry, and Nokia.
According to documents obtained by TMZ, Gatz held two option contracts for BB. He states that by Wednesday night, the value of those options decreased by almost 200%.
Gatz argues that the block in retail trade for these stocks has caused irreparable damage to his finances and accuses Robinhood of manipulating the market. Hence, he is now “unable to get fair market value for his options.”
The lawsuit states that Gatz is suing for significant damages; he alleges that Robinhood made the move “to protect institutional investment at the detriment of retail customers.”
In the middle of the GameStop stock boom, Robinhood’s trading halt has angered many investors who think the company is siding with the Wall Street establishment.
The lawsuit by Gatz is likely to fuel that conviction, while Robinhood has stopped trading for everyday people. They also “continued to allow investment in these securities by institutional investors who have benefited from the stoppage of retail investment.”