Stock trading app Robinhood has been around for some time now, but the app recently rose to prominence after a bunch of Redditors decided to invest heavily into GameStop’s stocks, causing the value of the stocks to rise, which in turn caused a lot of other Wall Street investors to incur huge losses as they had taken a short position on the stock.
The app has faced a ton of backlash ever since, and now it looks like they’re in some legal trouble as the family of 20-year old Alex Kearns is suing the company, claiming that they were responsible for the death of the 20-year old who took his own life after he believed he had racked up $730,000 in trading losses through the app.
The lawsuit says, “This case centers on Robinhood’s aggressive tactics and strategy to lure inexperienced and unsophisticated investors, including Alex, to take big risks with the lure of tantalizing profits. Robinhood built out its trading platform to look much like a videogame to attract young users and minimize the appearance of real-world risk.”
Kearns had at first purchased multiple stock options through the app then later he discovered he had a negative balance of $730,000. Kearns tried contacting the company but could only get automated responses. The company contacted him through email a day after his suicide claiming that his trades had been resolved and that he didn’t owe any money.
Source Ubergizmo
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