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KlaymanToskes Represents Robinhood Customer Seeking $250k for 2021 Operational Outage Failures

If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*

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Updated on: April 28, 2023

Notice to Robinhood Investors Who Suffered Losses of $100k or More: You May be Entitled to a Financial Recovery Through FINRA Arbitration

National investment loss lawyers KlaymanToskes reports that the firm is representing a Robinhood customer who suffered significant investment losses due to the platform’s operational outages in 2021. The investor is seeking the recovery of $250,000 as he had no ability to trade his call options in GameStop (NYSE: GME).

On January 28, 2021, Robinhood’s trading application froze and many customers were unable to access their accounts, resulting in investment losses that instead would have generated substantial gains. In this case, the law firm is representing a Robinhood customer who was unable to trade his GameStop shares as a result of the outage, when the stock rose to over $482 per share.

By the time the customer was able to access his account, GameStop’s stock had declined and he had lost the opportunity to realize the substantial gain in the call options. Had the customer been able to login and sell his call options on GameStop, he would have generated a profit of approximately $250,000.

Investors who sustained losses in excess of $100,000 are encouraged to contact attorney Lawrence L. Klayman, Esq. for a confidential and free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss our investigation and recovery options. 

We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Disclosure: Investors that did not sustain losses in excess of $100,000 are not eligible for our legal services.

Robinhood Investors Who Lost $100k or More Should Consider Filing FINRA Arbitration Claims

KlaymanToskes believes the best solution for Robinhood investors seeking to recover investment losses is a FINRA (Financial Industry Regulatory Authority) arbitration claim. 

Arbitration is generally the most cost-effective, timely, and rewarding method for investors seeking an investment loss recovery. Investors can learn more about the arbitration process and how it functions in our recent blog post, linked here

Robinhood’s operational failures resulted in its failure to act in the best interest of its customers. In addition, Robinhood owed its customers various fiduciary duties, which it breached by not allowing its customers to access their accounts, causing significant damages. KlaymanToskes’ investigation revealed that the firm engaged in the following securities violations: 

  • Misrepresentations and omissions (of material facts),
  • Breach of fiduciary duty,
  • Breach of Contract,
  • Failure to Supervise,
  • Negligence and
  • Violation of the state and federal securities laws.

Customers of Robinhood who sustained losses in excess of $100,000 due to 2021 operational outages are encouraged to contact attorney Lawrence L. Klayman, Esq. for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss our investigation and recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com