NEW YORK, Dec. 21, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors 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 all persons and entities who purchased or otherwise acquired Robinhood securities pursuant and/or traceable to the July 30, 2021 IPO, both dates inclusive (the “Class Period”). Investors have until February 15, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Robinhood is a financial services company known for pioneering commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app.
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 Offering, Robinhood’s shares fell sharply, trading as low as $17.08 per share, representing a decline of over 55% from the Offering Price.
If you purchased or otherwise acquired Robinhood shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
