RADNOR, Pa., Jan. 8, 2022 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP advises investors that a securities class action lawsuit has been filed in United States District Court for the Northern California District v Robinhood Markets, Inc. (“Robinhood”). (NASDAQ: HOOD). The action accuses Robinhood of violations of federal securities laws, including fraudulent omissions and misrepresentation regarding the business, operations and prospects of the company. As a result of Robinhood’s materially misleading statements to the public, Robinhood’s investors suffered significant losses.
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PRINCIPAL COMPLAINANT DEADLINE: February 15, 2022
COURSE PERIOD: July 30, 2021 to December 17, 2021
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or toll free (844) 887-9500 or by email at firstname.lastname@example.org
ROBINHOOD’S ALLEGED FAULT
Robinhood, headquartered in Menlo Park, Calif., Is a financial services company that operates a mobile app that offers commission-free stock trading and allows users to invest in stocks, exchange-traded funds and cryptocurrencies.
On July 30, 2021, Robinhood proceeded to its initial public offering (âIPOâ) and issued 55 million shares at $ 38 per share, anticipating proceeds of more than $ 2 billion. Then, on October 26, 2021, Robinhood announced its financial results for the third quarter of 2021. The report found that Robinhood’s total third-quarter net income was nearly $ 73 million lower than Wall Street estimates. crypto transactions amounting to $ 51 million, a fall of 78% from the previous quarter. Robinhood also reported a decline in its Monthly Active Users (âMAUâ), funded accounts, assets in custody and average revenue per user. Following this news, Robinhood’s stock fell $ 4.13 per share, or 10.44%, to close at $ 35.44 per share on October 27, 2021.
Then, on November 8, 2021, Robinhood revealed that it suffered a “data security incident” on November 3, 2021, admitting that an “unauthorized third party” had obtained the email addresses of approximately five million users and the full names of another group of around two million users, indicating that the attack potentially affected nearly 40% of Robinhood’s MAUs. Following this news, Robinhood’s stock fell more than 3% on November 9, 2021 to close at $ 36.70 per share, before falling 6% to close at $ 34.49 the following day. As of the date the original complaint was filed, Robinhood shares were trading at $ 17.08 per share, more than 55% below the IPO price of $ 38.
WHAT CAN I DO?
Robinhood investors can, no later than February 15, 2022, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or other attorney, or may choose to do nothing and remain an absent member of the class. Kessler Topaz Meltzer & Check, LLP encourages Robinhood investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO SUBSCRIBE TO THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the most significant financial interest and who are also suitable and typical for the proposed investor category. The lead plaintiff chooses a lawyer to represent the lead plaintiff and the class and these lawyers, if approved by the court, are the lead or class advocates. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, fault and neglect on the part of businesses and trustees. In the end, we were successful if the bad guys pay and you get your holdings back. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (free call)
A video accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/2381e114-2965-4143-a00a-c93a96a144bb