The suit, filed on behalf of retail investors, alleged that Citadel had been shorting AMC and GameStop through its hedge fund business. Institutional Investor previously covered the lawsuit, which attempted to link Robinhood’s decision to halt trading to a desire to protect Citadel. Citadel also runs a separate hedge fund business. Some of those trades would have been processed through Citadel Securities, which acts as a market maker. At the heart of the suit is Robinhood’s decision to halt trading of AMC Entertainment Holdings and GameStop when the stocks were skyrocketing early this year. On Thursday, Judge Cecilia Altonaga ruled to drop the January lawsuit filed by investors against the two firms and other market participants. A federal judge in Florida has dismissed a lawsuit accusing Robinhood Markets and Citadel Securities of colluding to stop investors from purchasing so-called meme stocks amid extreme market volatility.
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