![]() ![]() 28, a move it said was done to meet capitalrequirements, sparking outcry among users and demands for itsexecutives to testify before Congress. However, Robinhood restricted trading in the most volatilestocks on Jan. The app helped fuel a wild rally in shares of video gameretailer GameStop Corp and other companies out of favorwith Wall Street hedge funds in what has been touted as arevolution in retail trading. The lawsuit comes amid growing scrutiny of Robinhood'scommission-free trading and seeks unspecified damages. Febru11:27:28 am The parents of a deceased amateur investor sued the financial trading app Robinhood Monday for the wrongful death of their son, Alex Kearns, who committed suicide last June mistakenly believing that he had lost 730,000 in a trade on the app. CBS Mornings Alex Kearns died thinking he owed hundreds of thousands for stock market losses on Robinhood. In reality, the loss was covered by other options inKearns' account, according to the lawsuit. Kearns died by suicide in June 2020 after he was led to believe he owed more than 730,000 after making some risky trades, according to a complaint previously obtained by PEOPLE. Kearns apparently believed an options trade placed throughRobinhood had led to a $730,000 loss, far beyond the possibleloss of around $10,000 that he had expected, according to thelawsuit. ![]() Monday's lawsuit said Robinhood has an obligation to knowits customers and ensure their trading strategies areappropriate, but instead the broker preyed on inexperiencedinvestors. The family of a 20-year-old stock trader who killed himself have sued the broker Robinhood for his death, citing its misleading communications that caused their son to panic over what he. "We were devastated by Alex Kearns’ death," said a statementfrom Robinhood, which added that it was improving itseducational materials and more live support staff, among otherchanges. Other international helplines can be found at notified Alex Kearns in June of what he thoughtwas a $730,000 loss on a trade, and when he was unable tocommunicate with anyone at the company, the college student wasthrown into a highly distressed mental state, the lawsuitstated.Īs a result, fearing he had obligated his family to repaythe huge loss, he ran in front of a train and killed himself,according to the lawsuit, filed in California state court. ![]() In the UK and Ireland, Samaritans can be contacted on 116 123 or email or In Australia, the crisis support service Lifeline is 13 11 14. In the US, the National Suicide Prevention Lifeline is 1-80. However, Robinhood restricted trading in the most volatile stocks on 28 January, a move it said was done to meet capital requirements, sparking outcry among users and demands for its executives to testify before Congress. Robinhood is being sued for the wrongful death of a 20-year-old college student who died by suicide last summer after he saw a negative balance of 730,000 in his trading account and mistakenly. The app helped fuel a wild rally in shares of the video game retailer GameStop and other companies out of favour with Wall Street hedge funds in what has been touted as a revolution in retail trading. The lawsuit, seeking unspecified damages, comes amid growing scrutiny of Robinhood’s commission-free trading. In reality, the loss was covered by other options in Kearns’s account, according to the lawsuit. Kearns apparently believed an options trade placed through Robinhood had led to a $730,000 loss, far beyond the possible loss of about $10,000 that he had expected, according to the lawsuit. Monday’s lawsuit said Robinhood had an obligation to know its customers and ensure its trading strategies were appropriate, but instead the broker preyed on inexperienced investors. “We were devastated by Alex Kearns’s death,” said a statement from Robinhood, which added that it was improving its educational materials and providing more live support staff, among other changes. As a result, fearing his family would have to repay the huge loss, he killed himself, according to the lawsuit, filed in California state court. ![]()
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