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Robinhood denies selling full shares of GameStop and AMC while blocking users from buying

Robinhood denies selling full shares of GameStop and AMC while blocking users from buying

almost 2 years ago by IanDorfman

Following this week's Reddit-fueled surge in stock value for companies like GameStop and AMC, the Robinhood investing service finds itself in hot water after seemingly selling off full shares of the impacted companies without consent or notification of its users. Robinhood fervently denies this.

In a statement put out to The Verge, Robinhood stated the following: “I can confirm that claims that Robinhood proactively sold customers’ shares outside of our standard margin-related sellouts or options assignment procedures are false.”

The same article that contains that statement, however, cites 6 separate customer testimonies to the contrary, showing that Robinhood restricted their ability to trade for no discernible reason outside of this.

Adding fuel to the fire, Google has also deleted over 100,000 1-star reviews from Robinhood's Google Play Store page. Though it is completely within Google's purview to do so, this further erodes the rapidly deteriorating trust users have for Robinhood in this situation.

As of the publishing of this story, users on the r/WallStreetBets subreddit are also calling for a class action lawsuit against Robinhood for the service's behavior in this situation, with more people than ever seeking alternative services to use for their stock market and general investing needs.

Further coverage: The Verge

almost 2 years ago by IanDorfman

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Robinhood is a new way to invest in the stock market. Zero-dollar ($0) commissions are available for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices.