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This case was last updated from PACER on 06/14/2021 at 10:57:47 (UTC).

D'agostino et al v. Ally Financial Inc. et al

Case Summary

On April 15, 2021, Stephen D’Agostino and Janelle Burch, (collectively, “Plaintiffs”) individually and on behalf of all others similarly situated, represented by Patrick Shanan Montoya of Colson Hicks Eidson, filed an antitrust class action against Ally Financial INC.; Alpaca Securities LLC; Cash App Investing LLC; Square INC.; Dough LLC and others (collectively, “Defendants”), seeking compensatory damages, punitive damages among other reliefs, for the alleged anticompetitive conduct of Defendants violating the antitrust laws. This case was filed in the U.S. District Court for the Southern District of Florida with Judge Darrin P. Gayles presiding.

 

In the complaint, the Plaintiff alleged that “Defendants Robinhood, Schwab, TD Ameritrade, WeBull, ETrade, and IB (defined as the “Broker Defendants”) offer online brokerage services to retail investors, allowing investors such as Plaintiffs to trade in stocks without incurring significant charges. Plaintiffs used the online Broker Defendants to purchase stocks in the companies they had identified. In response to these stock purchases, the prices of many of these stocks rose. The combined purchases by Plaintiffs and by the hedge funds seeking to cover their short positions, in turn, created a “short squeeze,” where the price of a stock that had been heavily shorted quickly jumps sharply higher. Faced with the prospect of huge losses on their short positions, Defendants came up with a scheme to drive the price of the stocks down by agreeing among themselves to limit the ability of the Plaintiffs to purchase more shares of stock while only allowing them to sell the shares they already held. Accordingly, as part of Defendants scheme, the Brokerage Defendants who operated the trading platforms used by Plaintiffs and other retail investors purposefully, willfully, and knowingly removed the ability of their customers to purchase certain stocks from their trading platforms in the midst of the short squeeze, depriving retail investors of the ability to invest in the open market and manipulating the open market to artificially lower prices.”

 

Furthermore, the Plaintiff alleged that “The Apex Clearing Corporation (“Apex”) & The Depository Trust & Clearing Corporation (“DTCC”) (collectively “Clearinghouse defendants”) and Citadel Enterprise Americas, LLC and Citadel Securities LLC (collectively, “Citadel”) Melvin Capital Management LP (hereinafter “Melvin Capital”) & Sequoia Capital Operations LLC (“Sequoia”) (Collectively “Fund Defendants”) pressured the Brokerage Defendants to restrict the trading of the Relevant Securities by retail investors. The conspiracy deceived retail investors into believing that they could fairly trade the Relevant Securities through the Brokerage Defendants until the Defendants restricted trading by retail investors for their own gain.

 

There are nine claims laid down by Plaintiffs. The first claim is for alleged violations of the Sherman Act 15 U.S.C. § 1; the second claim is for alleged conspiracy to restrain trade in violation of the California Cartwright Act Cal. Bus. & Prof. Code § 16700 et seq.; third claim is for alleged unfair competition Cal. Bus. & Prof. Code § 17200 et seq.; the fourth claim is for alleged dissemination of untrue and misleading public statements Cal. Bus. & Prof. Code § 17500 et seq.; the fifth claim is for alleged breach of the implied covenant of good faith and fair dealing; the sixth claim is for alleged negligence (against brokerage defendants); the seventh claim is for alleged negligence per se (against brokerage defendants); the eighth claim is for alleged breach of fiduciary duty (against brokerage defendants); and the last claim is for alleged constructive fraud (against brokerage defendants).

 

In the prayer for relief, the Plaintiff has requested the court to pass an order certifying the proposed Class, award compensatory damages, restitution, and/or refund of all funds acquired by Defendant including actual, statutory, punitive, and/or trebled damages with prejudgment and post judgement interest, along with costs of litigation

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-21458

  • Filing Date:

    04/15/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Other - Antitrust

  • Court:

    U.S. District Courts

  • Courthouse:

    Florida Southern District

Judge Details

Presiding Judge

Darrin P. Gayles

 

Party Details

Plaintiffs

Stephen D'agostino

Janelle Burch

Defendants

Square Inc.

Trading 212 Ltd.

Citadel Enterprise Americas, LLC

Robinhood Financial, LLC

Freetrade Ltd.

Robinhood Securities, LLC

Stash Financial, Inc.

Fumi Holdings, Inc.

WeBull Financial LLC

Ally Financial Inc.

Melvin Capital Management LP

Morgan Stanley Smith Barney LLC

ETrade Financial Corporation

Cash App Investing LLC

TD Ameritrade, Inc.

Interactive Brokers LLC

Dough LLC

ETrade Securities LLC

16 More Parties Available

Attorney/Law Firm Details

Plaintiff Attorneys

Patrick Shanan Montoya

Attorney at Colson Hicks Eidson

255 Alhambra Circle, Penthouse

Coral Gables, FL 33134-2351

Daniel C. Levin

Attorney at Levin, Sedran & Berman, LLP

510 Walnut Street, Suite 500

Philadelphia, PA 19106-3697

Austin B. Cohen

Attorney at Levin Sedran & Berman LLP

510 Walnut Street - Suite 500

Philadelphia, PA 19106

Defendant Attorney

Maria Alina Castellanos Alvarado

Attorney at Hunton Andrews Kurth LLP

333 S.E. 2 Avenue, Suite 2400

Miami, FL 33131

 

Court Documents

#11

(#11) Notice of Pending, Refiled, Related or Similar Actions by Janelle Burch, Stephen D'agostino (Montoya, Patrick) (Entered: 05/17/2021)

#8

(#8) Notice of Entry of Parties Listed NOTE: New Filer(s) will appear twice, since they are also a new party in the case. New Filer(s)/Party(s): The Depository Trust & Clearing Corporation. (Montoya, Patrick) (Entered: 05/12/2021)

#6

(#7) Clerks Notice to Filer re #6 Notice of Entry of Parties Listed into CM/ECF. Parties/Mediator Not Added; ERROR - The Filer failed to add all parties from the complaint/petition/removal, etc. or the mediator. Filer is instructed to file a Notice of Entry of Parties Listed into CM/ECF and add the additional parties/mediator. (pcs) (Entered: 05/12/2021)

#4

(#4) Notice of Pending, Refiled, Related or Similar Actions by Robinhood Financial, LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Attorney Maria Alina Castellanos Alvarado added to party Robinhood Financial, LLC(pty:dft), Attorney Maria Alina Castellanos Alvarado added to party Robinhood Markets, Inc.(pty:dft), Attorney Maria Alina Castellanos Alvarado added to party Robinhood Securities, LLC(pty:dft). (Castellanos Alvarado, Maria) (Entered: 04/18/2021)

 

Docket Entries

  • 06/03/2021
  • DocketAttorney Austin B. Cohen representing D'agostino, Stephen (Plaintiff) and Burch, Janelle (Plaintiff); Attorney Daniel C. Levin representing D'agostino, Stephen (Plaintiff) and Burch, Janelle (Plaintiff); Activated. (pt) (Entered: 06/03/2021)

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  • 06/02/2021
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  • Docket(#17) Amended MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Daniel C. Levin. (Second Amended Motion) Filing Fee $ 200.00 Amended/Corrected Motion to Appear Pro Hac Vice Filed - Filing Fees Previously Paid. See #10 Motion to Appear Pro Hac Vice, by Janelle Burch, Stephen D'agostino. Responses due by 6/16/2021 (Attachments: #1 Certification Certification and Proposed Order)(Montoya, Patrick) (Entered: 06/02/2021)

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  • 06/02/2021
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  • Docket(#16) Amended MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Austin B. Cohen. (Second Amended Motion) Filing Fee $ 200.00 Amended/Corrected Motion to Appear Pro Hac Vice Filed - Filing Fees Previously Paid. See #9 Motion to Appear Pro Hac Vice, by Janelle Burch, Stephen D'agostino. Responses due by 6/16/2021 (Attachments: #1 Certification Certification and Proposed Order)(Montoya, Patrick) (Entered: 06/02/2021)

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  • 06/01/2021
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  • Docket(#15) PAPERLESS ORDER denying without prejudice #13 #14 Motions to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filings for failure to comply with the Local Rules. Signed by Judge Darrin P. Gayles (mcy) (Entered: 06/01/2021)

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  • 05/25/2021
  • DocketAttorney Austin B. Cohen representing D'agostino, Stephen (Plaintiff) and Burch, Janelle (Plaintiff) Activated. (pt) (Entered: 05/25/2021)

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  • 05/25/2021
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  • Docket(#14) Amended MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Austin B. Cohen. Filing Fee $ 200.00 Amended/Corrected Motion to Appear Pro Hac Vice Filed - Filing Fees Previously Paid. See #9 Motion to Appear Pro Hac Vice, by Janelle Burch, Stephen D'agostino. Responses due by 6/8/2021 (Attachments: #1 Certification Certification and Proposed Order)(Montoya, Patrick) (Entered: 05/25/2021)

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  • 05/24/2021
  • DocketAttorney Daniel C. Levin representing D'agostino, Stephen (Plaintiff) and Burch, Janelle (Plaintiff) Activated. (pt) (Entered: 05/24/2021)

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  • 05/24/2021
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  • Docket(#13) Amended MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Daniel C. Levin. Filing Fee $ 200.00 Amended/Corrected Motion to Appear Pro Hac Vice Filed - Filing Fees Previously Paid. See #10 Motion to Appear Pro Hac Vice, by Janelle Burch, Stephen D'agostino. Responses due by 6/7/2021 (Attachments: #1 Certification Certification and Proposed Order)(Montoya, Patrick) (Entered: 05/24/2021)

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  • 05/20/2021
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  • Docket(#12) PAPERLESS ORDER denying without prejudice #9 #10 Motions to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filings for failure to comply with the Local Rules. Signed by Judge Darrin P. Gayles (mcy) (Entered: 05/20/2021)

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  • 05/17/2021
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  • Docket(#11) Notice of Pending, Refiled, Related or Similar Actions by Janelle Burch, Stephen D'agostino (Montoya, Patrick) (Entered: 05/17/2021)

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  • 05/13/2021
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  • Docket(#10) Plaintiff's MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Daniel C. Levin. Filing Fee $ 200.00 Receipt # AFLSDC-14684170 by Janelle Burch, Stephen D'agostino. Responses due by 5/27/2021 (Attachments: #1 Certification Certification and Proposed Order)(Montoya, Patrick) (Entered: 05/13/2021)

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  • 05/13/2021
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  • Docket(#9) Plaintiff's MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Austin B. Cohen. Pay.gov Agency Tracking ID FLSDC-14683874. Filing Fee $ 200.00 by Janelle Burch, Stephen D'agostino. Responses due by 5/27/2021 (Attachments: #1 Certification)(Montoya, Patrick) (Entered: 05/13/2021)

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  • 05/12/2021
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  • Docket(#8) Notice of Entry of Parties Listed NOTE: New Filer(s) will appear twice, since they are also a new party in the case. New Filer(s)/Party(s): The Depository Trust & Clearing Corporation. (Montoya, Patrick) (Entered: 05/12/2021)

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  • 05/12/2021
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  • Docket(#7) Clerks Notice to Filer re #6 Notice of Entry of Parties Listed into CM/ECF. Parties/Mediator Not Added; ERROR - The Filer failed to add all parties from the complaint/petition/removal, etc. or the mediator. Filer is instructed to file a Notice of Entry of Parties Listed into CM/ECF and add the additional parties/mediator. (pcs) (Entered: 05/12/2021)

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  • 05/11/2021
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  • Docket(#6) Notice of Entry of Parties Listed (Montoya, Patrick) (Entered: 05/11/2021)

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  • 04/21/2021
  • Docket(#5) NOTICE OF COURT PRACTICE. Unless otherwise specified by the Court, every motion shall be double-spaced in Times New Roman 12-point typeface. Multiple Plaintiffs or Defendants shall file joint motions with co-parties unless there are clear conflicts of position. If conflicts of position exist, parties shall explain the conflicts in their separate motions. Failure to comply with ANY of these procedures may result in the imposition of appropriate sanctions, including but not limited to, the striking of the motion or dismissal of this action. Signed by Judge Darrin P. Gayles (mcy) (Entered: 04/21/2021)

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  • 04/18/2021
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  • Docket(#4) Notice of Pending, Refiled, Related or Similar Actions by Robinhood Financial, LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Attorney Maria Alina Castellanos Alvarado added to party Robinhood Financial, LLC(pty:dft), Attorney Maria Alina Castellanos Alvarado added to party Robinhood Markets, Inc.(pty:dft), Attorney Maria Alina Castellanos Alvarado added to party Robinhood Securities, LLC(pty:dft). (Castellanos Alvarado, Maria) (Entered: 04/18/2021)

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  • 04/15/2021
  • Docket(#3) Clerks Notice to Filer re: Electronic Case. Parties Not Added. The Filer failed to add all parties associated with the case. Filer is instructed to add the additional parties by filing a Notice of Entry of Parties. It is not necessary to re-file this document. (pcs) (Entered: 04/15/2021)

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  • 04/15/2021
  • Docket(#2) Clerks Notice of Judge Assignment to Judge Darrin P. Gayles. Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge Edwin G. Torres is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent. Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (pcs) (Entered: 04/15/2021)

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  • 04/15/2021
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  • Docket(#1) COMPLAINT against All Defendants. Filing fees $ 402.00 receipt number AFLSDC-14609842, filed by Janelle Burch, Stephen D'agostino. (Attachments: #1 Civil Cover Sheet Civil Cover Sheet)(Montoya, Patrick) (Entered: 04/15/2021)

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