Important Update: We are no longer accepting cases related to alleged Robinhood stock trading restrictions. However, this page remains available for informational purposes. If you’re seeking legal assistance for other banking issues, please visit our financial services page for active investigations.
Restrictions on Robinhood Stock Trading: What You Need to Know
In January 2021, the investment brokerage company Robinhood restricted its stock trading for Gamestop and other struggling businesses, causing stocks to tumble. The decision appeared to benefit large investors and hedge fund managers at the expense of individuals. While McCune Law Group is no longer accepting leads related to this concern, we remain committed to raising awareness about consumer protection issues. This page will remain live as a resource for affected individuals.
Learn more about financial services claims.
Understanding Restrictions on Robinhood Stock Trading
On January 25, 2021, only five days after new retail investors and day traders caused the stocks of struggling businesses like Gamestop to skyrocket, Robinhood and other investment brokerage companies began restricting and halting the trade of stocks for these companies. As a result, the value of these stocks, which at one point had increased up to 1,300% went into freefall. In one day, GameStop shares toppled 44%.
MLG began investigating why Robinhood would make a decision that would harm its customers. This decision appears to blatantly benefit large institutional investors and hedge fund managers at the expense of individual investors, though Robinhood has only claimed, “Amid significant market volatility, it’s important as ever that we help customers stay informed.”
We’re no longer taking leads pertaining to Robinhood stock trading restrictions. If you have another financial services concern, please call (909) 345-8110 or fill out our online form today.
.Timeline of Legal Action
Robinhood has faced upwards of 30 class action lawsuits for its restrictions on “meme stock” trading in January 2021. As of 2025, most of these cases have been dismissed, though some have moved to arbitration. Below is a brief timeline of the legal action taken against Robinhood’s stock trading restrictions.
January 2021: Gamestop stocks rise exponentially as new traders short the market. Robinhood and other investment brokerage firms instate restrictions on stock trading that may cost their individual customers millions in lost trades.
January – September 2021: Class action suits are filed against Robinhood in New York, Massachusetts, Florida, California, and elsewhere.
August 2022: A federal court in Florida dismisses claims that Robinhood acted improperly when it blocked customers’ ability to trade on Gamestop and other stocks in January 2021. The company is still made to face market manipulation claims.
November 2023: Robinhood users affected by the restrictions on stock trading are denied class status in the same Florida court.
April 2025: Four individual Robinhood customers move to arbitration proceedings.
What Can Affected Investors Do?
Although options for class actions may be limited at this time, you still have legal options. If you experienced a loss related to Robinhood stock trading restrictions in January 2021, you can:
- Check for Class Action Updates: Visit TopClassActions.com for the latest on litigation against Robinhood.
- Explore Other Legal Avenues: If you’ve experienced other issues pertaining to banking and lending, you may qualify for legal action. Explore our Financial Services cases for more details.
Related Cases and Legal Areas:
In addition to our Financial Services practice area, individuals who have been negatively impacted by their dealing with a financial institution may want to explore:
- Consumer Fraud Class Actions: In cases where a company has made false promises to their customers, individuals may be able to pursue a claim of fraud.
- Class Action Lawsuits: If numerous consumers have been impacted by the same issue, they may form a class action to bring a joint suit against a negligent company.
Need Legal Assistance?
If you’ve been harmed by a company or individual, you have the right to fight for just compensation. Our experienced consumer protection and financial services are here to help you get what you deserve. Get in touch today to explore your legal options.
Final Note:
McCune Law Group is no longer accepting leads pertaining to Robinhood stock trading restrictions. This page remains active as an informational resource for affected individuals.
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Counsel Richard McCune is licensed to practice only in the state of California. The law firm of McCune Law Group has attorneys licensed to practice law in AZ, CA, IL, MO, NJ, NY, and PA. This information section is not intended to be a solicitation for services in states where it is forbidden for non-barred attorneys from advertising for services, and McCune Law Group does not have attorneys barred in that state. McCune Law Group is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys are not barred, it does so by filing the complaint along with local counsel barred in that state.
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