Levi & Korsinsky LLP, National Class Action Law Firm, Announces Class Action Investigation Against Robinhood and Other Brokers on Behalf of Investors in CarParts.com, Inc. (NASDAQ: PRTS)
New York, New York--(Newsfile Corp. - January 28, 2021) - Levi & Korsinsky, LLP, a national securities law firm that has recovered hundreds of millions of dollars for investors, announces that it has commenced an investigation of Robinhood, Interactive Brokers, and other popular retail trading platforms on behalf of investors of CarParts.com, Inc. (NASDAQ: PRTS) who were harmed as a result of trading bans or forced liquidations involving PRTS shares.
On January 28, 2021, customers of Robinhood, Interactive Brokers and other popular trading platforms claimed that they were being blocked from purchasing shares of CarParts.com, Inc. (NASDAQ: PRTS) and other securities that are being heavily shorted by institutional investors.
Recently, retail investors have turned the tables on Wall Street by buying up stocks heavily shorted by hedge funds such as Melvin Capital, causing increased volatility and short-squeeze losses to these institutional investors. However, on January 28th, Robinhood, Interactive Brokers, and other trading platforms announced that retail investors could no longer purchase certain stocks and raised margin requirements for certain securities.
The inability to trade shares has sparked outrage across social media, as users took to Twitter to vent their frustrations, stating:
"You can no longer buy GameStop stock on Robinhood. Ditto Nokia, AMC, and all the other stocks that had been shorted."
Another said: "The free market is only free until rich people lose money."
In response to these actions, Dave Portnoy, the founder of the sports and pop culture blog Barstool Sports, released a series of tweets questioning Robinhood's integrity and agenda. He called for retail investors not to close their positions.
Rep. Alexandria Ocasio-Cortez is also criticizing Robinhood's decision, calling it "unacceptable" on Twitter and adding that she would also support a Congressional hearing "if necessary."
Dallas Mavericks owner Mark Cuban also took to Twitter, writing, "So are @robinhoodapp and @IBKR ending trading in #wallstreetbets stocks because they are losing their ass on these trades? Or maybe they dont have the cash to enable the trades at this scale? Anyone have any insight on their economics?"
These actions caused market havoc and saddled retail investors with billions of dollars in losses as the market bids for stock was blocked by certain brokerage firms.
To learn more about this investigation and your rights if you believe you have suffered losses, go to: https://www.zlk.com/pslra-1/prts-retail-brokers-class-action-information-request-form
Levi & Korsinsky is a nationally recognized firm with offices in New York, Connecticut, California, and Washington D.C. The firm's attorneys have extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities lawsuits and have recovered hundreds of millions of dollars for aggrieved shareholders. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.
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