Robinhood, Citadel Win Dismissal of Meme-Stock Lawsuit
- Federal judge says retail investors failed to show collusion
- Suit said market-maker pressured brokerage to restrict trades
Photographer: Tiffany Hagler-Geard/Bloomberg
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Citadel Securities and Robinhood Markets Inc. won dismissal of a proposed class-action lawsuit brought by retail investors who accused the firms of colluding during January’s meme-stock frenzy.
U.S. District Judge Cecilia Altonaga in Miami said that the plaintiffs failed to show there was any agreement between Citadel Securities and Robinhood to act in concert. In a Wednesday ruling, she dismissed the case without prejudice, giving the investor group until Dec. 20 to possibly file an amended complaint.