The brand of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Avenue after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021. REUTERS/Andrew Kelly

Aug 11 (Reuters) – Inventory buying and selling platform Robinhood Markets Inc (HOOD.O) should face market manipulation claims over restrictions it positioned on buying and selling throughout final yr’s “meme inventory” rally, a U.S. choose dominated on Thursday.

U.S. District Courtroom Decide Cecilia Altonaga in Miami stated within the ruling that buyers in GameStop Corp (GME.N), AMC Leisure Holdings Inc (AMC.N) and 7 different shares can proceed with a proposed class motion lawsuit alleging the restrictions artificially elevated the shares’ provide.

The lawsuit was one among a number of instances introduced in opposition to the retail buying and selling platform after it quickly barred clients from shopping for sure scorching shares in January 2021, together with GameStop and AMC.

Shares of these firms surged to excessive highs because of a social media-fueled rally that ultimately led Robinhood and others to limit buying and selling within the affected securities, infuriating retail buyers and rattling market confidence. The volatility brought about main losses for hedge funds that had wager in opposition to the meme shares.

An legal professional for Robinhood didn’t instantly reply to a request for remark.

Reporting by Jody Godoy in New York; modifying by Jonathan Oatis and Leslie Adler

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