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Online Brokerage Stock Trading Restriction Investigation

On Thursday, January 28, 2021, several popular online brokerages, including Robinhood Markets Inc., (“RobinHood”), Webull Financial LLC (“WeBull”), E*Trade Financial Corp. (“ETrade”) and Interactive Brokers Group Inc. (“Interactive Brokers”) restricted users from purchasing new shares of several stocks that had been experiencing rapid and significant price increases, including GameStop Corp. (“GME”), AMC Entertainment Holdings Inc. (“AMC”), BlackBerry Ltd, (“BB”), Bed Bath & Beyond Inc. (“BBBY”) and Koss Corp. (“KOSS”).

Online Stock Brokerage

Online Brokerage Stock Trading Restriction Investigation

These restrictions only allowed individuals to sell their stock and to sell call option contract positions, but prevented the purchase of any new shares in these companies – or significantly limited the number of shares an individual could purchase.  Similarly, the brokerages prevented individuals from purchasing new call-option contracts – or significantly limited the purchase of call options.

The same day the restrictions were announced (January 28, 2021), the price of GME stock fell 44%, AMC stock fell 57%, and shares of BB, BBBY and KOSS all fell 28% or more. Silver Golub & Teitell LLP is currently investigating whether the actions of the online brokerages and other entities may have violated federal or state antitrust laws, federal law governing the manipulation of commodities prices and other state laws concerning their conduct.

If you owned shares of GameStop Corp. (GME), AMC Entertainment Holdings Inc. (AMC), BlackBerry Ltd, (BB), Bed Bath & Beyond Inc. (BBBY) or Koss Corp. (KOSS) or owned an option to purchase shares in one of these companies at a later date as of January 28, 2021, and you want to discuss your rights or how this conduct may have impacted you, please contact Ian W. Sloss at isloss@sgtlaw.com or at (203) 325-4491.

Ian W. Sloss is an associate at Silver Golub & Teitell LLP, a law firm with offices in Stamford, Hartford, Waterbury and Danbury, Connecticut.