Robinhood is an app created in 2013 that is designed to offer commission-free trading on individual companies. The company has found itself all across the headlines over the past few days amid the restrictions it placed on users regarding various stocks like Gamestop and AMC. The story began when investors began buying stock in Gamestop then suggesting their friends do the same on Reddit. The whole ordeal took off nearly instantaneously as Gamestop's stocks reached heights never imagined. In turn, Robinhood eventually restricted its users from making money on their platform through these stocks.
In response to this, an individual or a small group of people paid for a plane to fly in the air and deliver a message to Robinhood. Flying over the company's headquarters in San Francisco, California, the banner read, "Suck My Nuts Robinhood." A photo of the plane was seen on Twitter as it occurred between 3 and 4:40 p.m. on the west coast. The rage over Robinhood reached new points when the app was handed a class-action lawsuit following its decision to block users from investing in certain stocks.
Filed in federal court, Robinhood was also joined by two other major hedge funds, Melvin Capital and Citadel 2, in the suit. Larry Friedman was the one who followed the lawsuit, claiming that Robinhood's decision caused the prices to drop significantly and in turn, favor the big hedge fund investors. Friedman is going after Wall Street for approximately $5 million in damages.
It's happening. At 3-4:30pm PST a plane will be flying a banner over San Francisco that says
"SUCK MY NUTS ROBINHOOD"
and I slid the pilot some extra $$ to circle right above RobinHood's HQ for a while. Go take some photos, I don't even live there 😂
Here’s the flight path: pic.twitter.com/iti3ik4or9— Kaspar (@KasparCMS) January 29, 2021
Robinhood remains adamant on setting restrictions concerning Gamestop stocks and will continue to limit just one share per purchase. The app did lessen the amount of companies that were blocked, a list that once included 50 has now dropped to just eight, but still includes stocks like Gamestop, AMC, Blackberry and Nokia, among others. In a statement released by the company clarifying their new restricted list, Robinhood said the limits remain "subject to change throughout the day." Anyone who holds more than one share for any of the restricted stocks will not have their stocks closed or sold but will not be able to open any new positions regarding that stock.