Robinhood conspired with the big Wall Street hedge funds to screw over the everyday folks who are suddenly striking it rich with investments like GameStop … according to a new lawsuit.
The free-trading app just got hit with a class action lawsuit filed in federal court … one day after Robinhood barred retail investors from continuing to buy stock in several companies in the battle between Reddit bros and hedge fund managers.
Melvin Capital and Citadel, 2 massive hedge funds, are also being sued … as the suit claims they were shorting companies like GameStop and losing a lot of money as the stock prices went up. The allegation is the fund conspired with brokerages like Robinhood to block the purchase of certain stocks in order to stop their financial bleeding.
In the suit, filed by…