NEW YORK, Dec. 27, 2021 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired securities of Robinhood Markets, Inc. (“Robinhood” or the “Company”) (NASDAQ: HOOD) in connection with Robinhood’s July 30, 2021 initial public offering (the “IPO”). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of the Securities Exchange Act of 1933.
If you purchased or otherwise acquired Robinhood securities, and/or would like to discuss your legal rights and options, please visit Robinhood Markets, Inc. Shareholder Class Action Lawsuit or contact Joe Seidman toll free at (877) 779-1414 or seidman@bernlieb.com.
Robinhood Markets, Inc. is a financial services company headquartered in Menlo Park, California, known for pioneering commission-free trades of stocks, exchange-traded funds (“ETFs”) and cryptocurrencies via a mobile app.
On or about July 30, 2021, Robinhood conducted its IPO, offering 55 million shares of its common stock to the public at a price of $38 per share for anticipated proceeds of over $2 billion.
According to the complaint, the Company’s registration statement and prospectus used to effectuate its IPO contained representations that were materially inaccurate, misleading, and/or incomplete. Specifically, Defendants failed to disclose that Robinhood’s revenue growth was experiencing a major reversal, with transaction-based revenues from cryptocurrency trading serving only as a short-term, transitory injection, masking what was actually stagnating growth; and Robinhood’s “significant investments” in enhancing the reliability and scalability of its platform were patently inadequate and/or defective, exposing Robinhood to worsening service-level disruptions and security breaches, particularly as the Company scaled its services to a larger user base.
As these true facts emerged after the IPO, Robinhood’s shares fell sharply, trading as low as $17.08 per share, representing a decline of over 55% from the offering price.
If you wish to serve as lead plaintiff, you must move the Court no later than February 15, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Robinhood securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/robinhoodmarketsinc-hood-shareholder-lawsuit-class-action-fraud-stock-467/ or contact Joe Seidman toll free at (877) 779-1414 or seidman@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Joe Seidman
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
seidman@bernlieb.com
