Explore the latest as Florida court allows Robinhood to conduct extended depositions in the Meme Stock lawsuit, shaping legal dynamics.
Explore the latest as Florida court allows Robinhood to conduct extended depositions in the Meme Stock lawsuit, shaping legal dynamics.
The Florida Southern District Court has granted permission for Robinhood, the popular online brokerage platform, to conduct additional depositions in an ongoing lawsuit (Meme Stock lawsuit) related to the January 2021 short squeeze. The court issued the relevant order on January 23, 2024.
The lawsuit alleges that Robinhood manipulated the securities market by imposing trading restrictions. It was specified that this was during the height of the so-called Meme Stock frenzy. Robinhood’s defense aims to demonstrate that extreme market volatility is fueled by retail investors’ engagement in “meme stocks.” This led to unprecedented collateral requirements. These requirements, in turn, forced Robinhood to implement the contested trading restrictions.
According to the latest court order, Robinhood is allowed to conduct the deposition of the National Securities Clearing Corporation (NSCC) representative in person, with a specific date to be agreed upon by the involved parties.
Regarding the depositions of the seven brokers identified in the Motion – namely, Apex, Axos, Interactive Brokers, TradeStation, E*TRADE, TD/Charles Schwab, and Merrill Edge – Robinhood has been granted permission to conduct remote or virtual depositions. Each deposition is scheduled for a half day, and these brokers had implemented similar trading restrictions during the relevant period.
In addition, the court has allowed Robinhood to take remote or virtual depositions of representatives from the six stock issuers identified in the Motion. These depositions are to comply with the duration requirements outlined in Federal Rule of Civil Procedure 30(d)(1).
All parties involved in the lawsuit are required to make efforts to complete the depositions by March 29, 2024. The court’s decision to permit additional depositions underscores the complexity and significance of the case. This continues to be closely watched within financial and legal circles.
With the court setting a deadline for the completion of depositions by March 29, 2024, the legal communities remain vigilant. Everyone is waiting for further insights into the events that unfolded during this unprecedented period in the securities market.
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