NEW YORK –The stockholder rights law firm Bragar Eagel & Squire reminds investors that a class action lawsuit has been filed against Robinhood Markets Inc. in the United States District Court for the Northern District of California on behalf of everyone who acquired Robinhood securities pursuant and/or traceable to the July 30 IPO, both dates inclusive, the firm said in a news release. Investors have until Feb. 15, 2022, to apply to the court to be appointed as lead plaintiff in the lawsuit.
Robinhood is a financial services company known for pioneering commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app, the law firm said.
On or about July 30, 2021, Robinhood conducted its IPO, offering 55 million shares of its common stock to the public at a price of $38 per share for anticipated proceeds of more than $2 billion.
According to the complaint, Robinhood’s registration statement and prospectus used to effectuate its IPO contained representations that were materially inaccurate, misleading and/or incomplete because they failed to disclose that, at the time of the IPO, Robinhood’s revenue growth was experiencing a major reversal, with transaction-based revenues from cryptocurrency trading serving only as a short-term transitory injection, masking what was actually stagnating growth. In addition, the company’s “significant investments” in enhancing the reliability and scalability of its platform were patently inadequate and/or defective, exposing Robinhood to worsening service-level disruptions and security breaches, particularly as the company scaled its services to a larger user base, according to the news release.
As these facts emerged after the offering, Robinhood’s shares fell sharply, trading as low as $17.08 per share, representing a decline of over 55% from the offering price.
If you purchased or otherwise acquired Robinhood shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com or by phone at (212) 355-4648.