Victory for Robinhood, Citadel in the meme-stock lawsuit

robinhood citadel

The victory came to Robinhood and Citadel in dismissing the proposal of a class-action lawsuit filed by retail investors. During January’s meme-stock frenzy, the investors accused the firms of conspiring.

The US District Judge Cecilia Altonagia said that the plaintiffs failed to show proof of any agreement between Citadel Securities and Robinhood to act in unison.

In a Wednesday ruling, the judge dismissed the case without any preconceptions. She also gave time until December 20 to the retail investor group to file any new or amended complaints.

The lawsuit alleged Citadel Securities amassed a substantial short position in GameStop Corp. and other stocks that later exploded in value. The market-maker was also alleged to pressure Robinhood to stop customers from purchasing the shares on the online brokerage on January 28.

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