The plaintiffs said that the firms identified in their lawsuit could collude because of the close-knit and secretive nature of their industry. The judge said these were “generic descriptions” that did not alone prove a conspiracy took place.
Though the investor group still has a chance to respond to the judge’s decision to dismiss the case, Robinhood and other defendants “will continue to prevail” given the lack of evidence, Bloomberg Intelligence litigation analyst Elliot Stein wrote in a note Thursday.
“Brokers’ parallel conduct, even if intentional, was justified in light of clearinghouse collateral requirements,” Stein said.
The case is In re: January 2021 Short Squeeze Trading Litigation, 21-2989, U.S. District Court, Southern District of Florida (Miami)
This article was provided by Bloomberg News.