Chief Judge Cecilia M. Altonaga of the Florida Southern District Court was forced to demand clarity in a lawsuit brought by hundreds of traders against Robinhood over the January 2021 short squeeze.
Technically, the lawsuit was terminated in May 2024, as a settlement was reached.
Now, however, some of the plaintiffs have requested to sever their claims. The procedure has hit the curb, as there is no clarity how the settlement affects all the parties.
Although the settlement was successful, the settlement only purports to resolve the claims of 12 Plaintiffs in the federal Securities Tranche. Neither the Lead Plaintiff nor Lead Counsel has indicated to the Court the status of the remaining actions in the Tranche.
On May 28, 2024, Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC and Plaintiffs Blue Laine-Beveridge, Abraham Huacuja, Ava Bernard, Brendan Clarke, Brian Harbison, Cecilia Rivas, Doi Nguyen, Joseph Gurney, Marcel Poirier, Sandy Ng, Santiago Gil Bohórquez, and Thomas Cash provided notice to the Court that the Parties have reached a settlement.
The Court has issued an order directing the Rosen Law Firm, Lead Counsel for the Federal Securities Tranche, to file a status report proposing how to proceed considering the recent settlement. The report has to be filed by September 4, 2024.
