Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Robinhood Markets Inc. (HOOD)
NEW YORK, Dec. 20, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Robinhood Markets Inc. (“Robinhood” or the “Company”) (NASDAQ: HOOD) in the United States District Court for the Northern District of California on behalf of investors who purchased Robinhood’s common stock pursuant or traceable to the Company’s July 2021 initial public offering (“IPO”).
On or about July 30, 2021, Robinhood conducted its IPO, offering 55 million shares of its common stock to the public at a price of $38 per share (the “Offering Price”) for anticipated proceeds of over $2 billion.
According to the Complaint, Robinhood’s registration statement and prospectus used to effectuate its IPO contained representations that were materially inaccurate, misleading, and/or incomplete because they failed to disclose that, at the time of the IPO, Robinhood’s revenue growth was experiencing a major reversal, with transaction-based revenues from cryptocurrency trading serving only as a short-term, transitory injection, masking what was actually stagnating growth. In addition, the Company’s “significant investments” in enhancing the reliability and scalability of its platform were patently inadequate and/or defective, exposing Robinhood to worsening service-level disruptions and security breaches, particularly as the Company scaled its services to a larger user base.
As these true facts emerged after the IPO, Robinhood’s shares fell sharply, trading as low as $17.08 per share, representing a decline of over 55% from the Offering Price.
Investors who purchased or otherwise acquired shares of Robinhood should contact the Firm prior to the February 15, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
