Litigation towards on-line brokerages together with Robinhood and TD Ameritrade alleging improper restrictions on “meme inventory” purchases will go ahead with claims grouped into 4 tranches, a federal choose overseeing the instances in Florida mentioned.
Essentially the most environment friendly strategy to deal with the litigation is to separate the claims by kind, with teams for antitrust claims, state regulation claims towards Robinhood, state regulation claims towards different broker-dealers, and federal securities claims, the U.S. District Courtroom for the Southern District of Florida said.
Traders accuse the brokerages of blocking them from buying and selling shares equivalent to GameStop Corp., AMC Leisure Holdings Inc., and Tootsie Roll Industries Inc. after Reddit’s r/WallStreetBets discussion board spurred intense curiosity within the securities. The traders allegedly misplaced cash once they had been blocked from shopping for the shares and will solely promote, inflicting costs to drop.
Robinhood Markets Inc., TD Ameritrade Inc., and E*Commerce Monetary Corp. are among the many dozens of on-line brokerages and clearinghouses named as defendants.
Attorneys with Joseph Saveri Legislation Agency LLP and Hach Rose Schirripa & Cheverie LLP will function lead counsel for the antitrust portion of the litigation, Choose Cecilia M. Altonaga’s order mentioned. A lawyer with the Ferraro Legislation Agency PA will deal with the lead position for the Robinhood claims, and a Safirstein Metcalf LLP legal professional will care for the opposite state regulation claims. Altonaga’s Tuesday order didn’t deal with the federal securities claims.
Altonaga additionally established a steering committee to “be sure that all tranche members’ pursuits and positions are represented in choice making.” Attorneys with Anastopoulo Legislation Agency LLC, McDonald Worley PC, Klafter Lesser LLP, Browne George Ross O’Brien Annaguey & Ellis LLP, and Pessah Legislation Group PC make up the committee.
The case is In re Jan. 2021 Short Squeeze Trading Litig., S.D. Fla., No. 1:21-md-02989, declare and management construction established 5/18/21.