RADNOR, Pa., Feb. 01, 2022 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California against Robinhood Markets, Inc. (“Robinhood”). (NASDAQ: HOOD). The action charges Robinhood with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Robinhood’s materially misleading statements to the public, Robinhood investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: February 15, 2022
CLASS PERIOD: July 30, 2021 through December 17, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at info@ktmc.com
ROBINHOOD’S ALLEGED MISCONDUCT
Robinhood, headquartered Menlo Park, California, is a financial services company that operates a mobile app which offers commission-free trading of stocks and allows users to invest in stocks, exchange-traded funds, and cryptocurrencies.
On July 30, 2021, Robinhood conducted its initial public offering (“IPO”) and issued 55 million shares at $38 per share, anticipating proceeds of over $2 billion. Then, on October 26, 2021, Robinhood announced its 2021 third-quarter financial results. The report revealed that Robinhood’s third-quarter total net revenue fell short of Wall Street estimates by nearly $73 million, as crypto transaction revenue totaled $51 million, a 78% plunge compared to the preceding quarter. Robinhood also reported declines in its monthly active users (“MAUs”), funded accounts, assets under custody, and average revenue per user. Following this news, Robinhood’s stock fell $4.13 per share, or 10.44%, to close at $35.44 per share on October 27, 2021.
Then, on November 8, 2021, Robinhood disclosed that it had suffered a “data security incident” on November 3, 2021, admitting that an “unauthorized third party” had obtained email addresses for approximately five million users and the full names of a different group of about two million users, indicating that the attack potentially affected nearly 40% of Robinhood’s MAUs. Following this news, Robinhood’s stock declined over 3% on November 9, 2021 to close at $36.70 per share, before then falling another 6% to close at $34.49 the very next day. As of the date the initial complaint was filed, Robinhood’s stock had traded as low as $17.08 per share, or over 55% below the $38 IPO price.
WHAT CAN I DO?
Robinhood investors may, no later than February 15, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Robinhood investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com
A video accompanying this press release is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e70cc439-cee1-4fd1-b182-162263e89dd6
