RADNOR, Pa., January 21, 2022 /PRNewswire/ — The law firm Kessler Topaz Meltzer & Check, LLP advises investors that a securities class action lawsuit has been filed against Robinhood Markets, Inc. (“Robinhood”). (NASDAQ: HOOD). The suit accuses Robinhood of violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and prospects. As a result of Robinhoods materially misleading statements to the public, Robinhood investors suffered significant losses.

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CLICK HERE TO SUBMIT YOUR ROBINHOOD LOSSES

PRINCIPAL APPLICANT DEADLINE: February 15, 2022

COURSE PERIOD: July 30, 2021 through December 17, 2021

CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:

James Maro, Esq. (484) 270-1453 or Free (844) 887-9500 or by email at [email protected]

ROBINHOOD’S ALLEGED MISCONDUCT

Robinhood, headquartered Menlo Park, California, is a financial services company that operates a mobile application that offers commission-free stock trading and allows users to invest in stocks, exchange-traded funds, and cryptocurrencies.

At July 30, 2021, Robinhood completed its initial public offering (“IPO”) and issued 55 million shares to $38 per share, anticipating proceeds of more than $2 billion. Then, on October 26, 2021, Robinhood announced its financial results for the third quarter of 2021. The report revealed that Robinhood’s total net revenue in the third quarter fell short of Wall Street estimates by nearly $73 million, while revenue from crypto transactions totaled $51 million, a drop of 78% compared to the previous quarter. Robinhood also reported declines in monthly active users (“MAUs”), funded accounts, assets in custody, and average revenue per user. Following this news, Robinhood’s stock fell $4.13 per share, or 10.44%, to close at $35.44 per share on October 27, 2021.

Then, on November 8, 2021, Robinhood revealed that it suffered a “data security incident” on November 3, 2021, admitting that an “unauthorized third party” had obtained the email addresses of about five million users and the full names of a different group of about two million users, indicating that the attack potentially affected nearly 40% of Robinhood’s MAUs. Following this news, Robinhood’s stock fell more than 3% on November 9, 2021 close at $36.70 per share, before falling another 6% to close at $34.49 the next day. On the date the original complaint was filed, Robinhood shares had traded as low as $17.08 per share, i.e. more than 55% below the $38 IPO price.

WHAT CAN I DO?

Robin Hood investors can not later than February 15, 2022, seek to be named as lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages Robinhood investors who have suffered significant losses to contact the company directly for more information.

CLICK HERE TO REGISTER FOR THE CASE

WHO CAN BE A PRINCIPAL APPLICANT?

A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the category of investors proposed. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP

Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. In the end, we were successful if the bad guys pay and you get your assets back. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP

James Maro, Jr., Esq.

280 King of Prussia Road

Radnor, Pennsylvania 19087

(844) 887-9500 (toll-free)

[email protected]

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SOURCE Kessler Topaz Meltzer & Check, LLP