This case was last updated from PACER on 03/29/2021 at 07:44:00 (UTC).

Nelson v. Robinhood Financial LLC et al

Case Summary

On January 28, 2021, Brandon Nelson, individually and on behalf of all others similarly situated (“Plaintiffs”), represented by Alexander Gabriel Cabeceiras of Derek Smith Law Group, PLLC, filed a class action lawsuit against Robinhood Financial, LLC, Robinhood Securities, LLC, and Robinhood Markets, INC (collectively “Defendants” or “Robinhood”), seeking an order for injunctive relief, punitive damages for alleged wilful, wanton and reckless behaviour amongst other reliefs. This case was filed in U.S. District Court in the Southern District of New York with Judge Jesse M. Furman presiding. 

 

Pursuant to Federal Rule of Civil Procedure 23(b)(3), the Plaintiff asserts to have filed the claim on behalf of all the Robinhood customers within the United States. It was alleged that Robinhood purposefully, willfully and knowingly pulled GME (Gamestop Corp.) from its trading platform and had deprived investors from potential gains from stock movement. 

 

Plaintiff also alleged that “Robinhood’s actions were done purposefully and knowingly to manipulate the market for the benefit of people and financial intuitions who were not Robinhood’s customers” and that “Robinhood is pulling securities like GME from its platform in order to slow growth and help benefit individuals and institutions who are not Robinhood customers but are Robinhood large institutional investors or potential investors.”

 

Plaintiff further alleged that “Robinhood, in order to slow the growth of GME and deprived their customers of the ability to use their service, abruptly, purposefully, willfully, and knowingly pulled GME from their app. Meaning, retail investors could no longer buy or even search for GME on Robinhood’s app.” Plaintiff also alleged that “Robinhood has completely blocked retailer investors from purchasing GME for no legitimate reason, thereby depriving retailer investors from the benefits of Robinhood’s services.”

 

There are four claims for relief laid down by the Plaintiff. The first claim for relief is for an alleged breach of contract (customer agreement). Plaintiff alleged that “Robinhood breached its customer agreement by, among other things, failing to disclose that its platform was going to randomly pull a profitable stock from its platform; that Robinhood failed to provide adequate explanation to their customers; that Robinhood knowingly put their customers at a disadvantage compared to customers who used other trading apps; that Robinhood failed to provide access to its own financial incentives to pull certain securities including GME; that Robinhood’s prohibited plaintiffs from performing in a timely manner (or at all) under the contract”. 

 

Other claims for relief relate to alleged breach of the implied covenant of good faith and fair dealing. Under this claim Plaintiff alleged that “Robinhood unfairly interfered with the rights of Plaintiffs and members of the Class and Subclass to receive the benefits of the Customer Agreement by, among other things, (i) failing to provide services necessary to carry out a trade; (ii) failing to provide certain trading services whatsoever; (iii) failing to inform individuals in a timely member of the drastic changes in trading abilities; and (iv) prohibiting plaintiffs from buying GME for Robinhood’s own pecuniary interest and not disclosing those interest to Plaintiffs and all Class and Subclass members''. Under the claim of negligence, Plaintiff alleged that Robinhood breached its duties owed to Plaintiffs that caused losses and damages to them. Plaintiffs also claim Robinhood allegedly committed a breach of fiduciary duty towards Plaintiff and the class members.

 

In its prayer for relief, the Plaintiff requested the court to determine an award for Plaintiffs and to pass an order for injunctive relief, punitive damages and costs of litigation.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-00777

  • Filing Date:

    01/28/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Other Contract

  • Courthouse:

    New York Southern District

Judge Details

Presiding Judge

Jesse M. Furman

 

Party Details

Plaintiffs

BRENDON NELSON

STEFFON DUNLOP

ALAA KHOURY

NICHOLAS BOGAN

BENEDICT WONG

Brandon Nelson

Defendants

ROBINHOOD MARKETS, INC.

ROBINHOOD FINANCIAL LLC

ROBINHOOD SECURITIES, LLC

Attorney/Law Firm Details

Plaintiff Attorneys

Alexander Gabriel Cabeceiras

Attorney at Derek Smith Law Group, PLLC

1 Penn Plaza, Suite 49Th Floor

New York, NY 10011

Seamus Barrett

Attorney at Derek Smith Law Group, PLLC

1 Penn Plaza, Suite 49Th Floor

New York, NY 10011

Caroline Hope Miller

Attorney at Derek Smith Law Group PLLC

701 Brickell Avenue, Suite 1310

Miami, FL 33131

Defendant Attorney

Kevin J. Orsini

Attorney at Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, NY 10019

 

Court Documents

#16

(#16) ORDER granting #15 Letter Motion for Extension of Time. Application GRANTED. The initial pretrial conference currently scheduled for April 15, 2021 is ADJOURNED to May 6, 2021 at 3:00 p.m. The Clerk of Court is directed to terminate ECF No. 15. So Ordered. (Signed by Judge Jesse M. Furman on 3/9/2021) (js) (Entered: 03/10/2021)

#15

(#15) LETTER MOTION for Extension of Time to answer, move to dismiss or otherwise respond to Plaintiffs' complaint addressed to Judge Jesse M. Furman from Kevin J. Orsini dated March 9, 2021. Document filed by Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC..(Orsini, Kevin) (Entered: 03/09/2021)

#14

(#14) NOTICE OF APPEARANCE by Seamus Barrett on behalf of NICHOLAS BOGAN, STEFFON DUNLOP, ALAA KHOURY, Brandon Nelson, BENEDICT WONG..(Barrett, Seamus) (Entered: 02/25/2021)

#13

(#13) COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by STEFFON DUNLOP, NICHOLAS BOGAN, BENEDICT WONG, Brandon Nelson, ALAA KHOURY..(Cabeceiras, Alexander) (Entered: 02/24/2021)

#12

(#12) FILING ERROR - DEFICIENT PLEADING - SIGNATURE ERROR - COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by BENEDICT WONG, STEFFON DUNLOP, ALAA KHOURY, NICHOLAS BOGAN..(Cabeceiras, Alexander) Modified on 2/25/2021 (dnh). (Entered: 02/24/2021)

#11

(#11) NOTICE OF APPEARANCE by Caroline Hope Miller on behalf of Brandon Nelson..(Miller, Caroline) (Entered: 02/15/2021)

#10

(#10) ORDER: Accordingly, it is hereby ORDERED that, on or before February 24, 2021, Plaintiff shall amend his Complaint to allege the citizenship of each constituent person or entity comprising the Defendant LLC's (If Plaintiff determines that all Defendants are, in fact, corporations, notwithstanding their names, it shall file a letter to that effect by no later than the same date). SO ORDERED., ( Amended Pleadings due by 2/24/2021.) (Signed by Judge Jesse M. Furman on 2/10/2021) (ama) (Entered: 02/10/2021)

#9

No Description Available

#8

No Description Available

#7

No Description Available

#6

No Description Available

#5

No Description Available

#4

No Description Available

#3

(#3) COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by Brendon Nelson..(Cabeceiras, Alexander) (Entered: 01/31/2021)

#2

(#2) NOTICE OF INITIAL PRETRIAL CONFERENCE: Initial Conference set for 3/18/2021 at 03:00 PM in Courtroom 1105, 40 Centre Street, New York, NY 10007 before Judge Jesse M. Furman. SO ORDERED. (Signed by Judge Jesse M. Furman on 1/29/2021) (ks) (Entered: 01/29/2021)

#1

***NOTICE TO ATTORNEY REGARDING DEFICIENT PLEADING. Notice to Attorney Alexander Gabriel Cabeceiras to RE-FILE Document No. #1 Complaint. The filing is deficient for the following reason(s): the pleading was not signed by the attorney. Re-file the pleading using the event type Complaint found under the event list Complaints and Other Initiating Documents - attach the correct signed PDF - select the individually named filer/filers - select the individually named party/parties the pleading is against. (jgo) (Entered: 01/29/2021)

4 More Documents Available
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Docket Entries

  • 03/10/2021
  • DocketSet/Reset Deadlines: Robinhood Financial LLC answer due 4/30/2021; Robinhood Markets, Inc. answer due 4/30/2021; Robinhood Securities, LLC answer due 4/30/2021. (js) (Entered: 03/10/2021)

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  • 03/10/2021
  • DocketSet/Reset Hearings: Initial Conference set for 5/6/2021 at 03:00 PM before Judge Jesse M. Furman. (js) (Entered: 03/10/2021)

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  • 03/10/2021
  • View Court Documents
  • Docket(#16) ORDER granting #15 Letter Motion for Extension of Time. Application GRANTED. The initial pretrial conference currently scheduled for April 15, 2021 is ADJOURNED to May 6, 2021 at 3:00 p.m. The Clerk of Court is directed to terminate ECF No. 15. So Ordered. (Signed by Judge Jesse M. Furman on 3/9/2021) (js) (Entered: 03/10/2021)

    Read MoreRead Less
  • 03/09/2021
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  • Docket(#15) LETTER MOTION for Extension of Time to answer, move to dismiss or otherwise respond to Plaintiffs' complaint addressed to Judge Jesse M. Furman from Kevin J. Orsini dated March 9, 2021. Document filed by Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC..(Orsini, Kevin) (Entered: 03/09/2021)

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  • 02/25/2021
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  • Docket(#14) NOTICE OF APPEARANCE by Seamus Barrett on behalf of NICHOLAS BOGAN, STEFFON DUNLOP, ALAA KHOURY, Brandon Nelson, BENEDICT WONG..(Barrett, Seamus) (Entered: 02/25/2021)

    Read MoreRead Less
  • 02/24/2021
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  • Docket(#13) COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by STEFFON DUNLOP, NICHOLAS BOGAN, BENEDICT WONG, Brandon Nelson, ALAA KHOURY..(Cabeceiras, Alexander) (Entered: 02/24/2021)

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  • 02/24/2021
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  • Docket(#12) FILING ERROR - DEFICIENT PLEADING - SIGNATURE ERROR - COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by BENEDICT WONG, STEFFON DUNLOP, ALAA KHOURY, NICHOLAS BOGAN..(Cabeceiras, Alexander) Modified on 2/25/2021 (dnh). (Entered: 02/24/2021)

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  • 02/15/2021
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  • Docket(#11) NOTICE OF APPEARANCE by Caroline Hope Miller on behalf of Brandon Nelson..(Miller, Caroline) (Entered: 02/15/2021)

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  • 02/10/2021
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  • Docket(#10) ORDER: Accordingly, it is hereby ORDERED that, on or before February 24, 2021, Plaintiff shall amend his Complaint to allege the citizenship of each constituent person or entity comprising the Defendant LLC's (If Plaintiff determines that all Defendants are, in fact, corporations, notwithstanding their names, it shall file a letter to that effect by no later than the same date). SO ORDERED., ( Amended Pleadings due by 2/24/2021.) (Signed by Judge Jesse M. Furman on 2/10/2021) (ama) (Entered: 02/10/2021)

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  • 02/09/2021
  • DocketSet/Reset Deadlines: Robinhood Financial LLC answer due 4/5/2021; Robinhood Markets, Inc. answer due 4/5/2021; Robinhood Securities, LLC answer due 4/5/2021., Set/Reset Hearings:( Initial Conference set for 4/15/2021 at 03:00 PM before Judge Jesse M. Furman.) (ama) (Entered: 02/09/2021)

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6 More Docket Entries
  • 01/31/2021
  • View Court Documents
  • Docket(#3) COMPLAINT against Robinhood Financial LLC, Robinhood Markets, Inc., Robinhood Securities, LLC. Document filed by Brendon Nelson..(Cabeceiras, Alexander) (Entered: 01/31/2021)

    Read MoreRead Less
  • 01/29/2021
  • View Court Documents
  • Docket(#2) NOTICE OF INITIAL PRETRIAL CONFERENCE: Initial Conference set for 3/18/2021 at 03:00 PM in Courtroom 1105, 40 Centre Street, New York, NY 10007 before Judge Jesse M. Furman. SO ORDERED. (Signed by Judge Jesse M. Furman on 1/29/2021) (ks) (Entered: 01/29/2021)

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  • 01/29/2021
  • DocketCase Designated ECF. (jgo) (Entered: 01/29/2021)

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  • 01/29/2021
  • DocketMagistrate Judge Ona T. Wang is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (jgo) (Entered: 01/29/2021)

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  • 01/29/2021
  • DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Jesse M. Furman. Please download and review the Individual Practices of the assigned District Judge, located at #https://nysd.uscourts.gov/judges/district-judges. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #https://nysd.uscourts.gov/rules/ecf-related-instructions..(jgo) (Entered: 01/29/2021)

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  • 01/29/2021
  • Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Alexander Gabriel Cabeceiras. The party information for the following party/parties has been modified: BRENDON NELSON; ROBINHOOD FINANCIAL LLC; ROBINHOOD SECURITIES, LLC; ROBINHOOD MARKETS, INC.. The information for the party/parties has been modified for the following reason/reasons: party name was entered in all caps;. (jgo) (Entered: 01/29/2021)

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  • 01/29/2021
  • Docket***NOTICE TO ATTORNEY REGARDING CIVIL CASE OPENING STATISTICAL ERROR CORRECTION: Notice to attorney Alexander Gabriel Cabeceiras. The following case opening statistical information was erroneously selected/entered: Cause of Action code Contempt Proceedings;. The following correction(s) have been made to your case entry: the Cause of Action code has been modified to 28:1331;. (jgo) (Entered: 01/29/2021)

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  • 01/29/2021
  • Docket***NOTICE TO ATTORNEY TO ELECTRONICALLY FILE CIVIL COVER SHEET. Notice to Attorney Alexander Gabriel Cabeceiras. Attorney must electronically file the Civil Cover Sheet. Use the event type Civil Cover Sheet found under the event list Other Documents. (jgo) (Entered: 01/29/2021)

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  • 01/29/2021
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  • Docket***NOTICE TO ATTORNEY REGARDING DEFICIENT PLEADING. Notice to Attorney Alexander Gabriel Cabeceiras to RE-FILE Document No. #1 Complaint. The filing is deficient for the following reason(s): the pleading was not signed by the attorney. Re-file the pleading using the event type Complaint found under the event list Complaints and Other Initiating Documents - attach the correct signed PDF - select the individually named filer/filers - select the individually named party/parties the pleading is against. (jgo) (Entered: 01/29/2021)

    Read MoreRead Less
  • 01/28/2021
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  • Docket(#1) FILING ERROR - DEFICIENT PLEADING - SIGNATURE ERROR - COMPLAINT against ROBINHOOD FINANCIAL LLC, ROBINHOOD MARKETS, INC., ROBINHOOD SECURITIES, LLC. (Filing Fee $ 402.00, Receipt Number ANYSDC-23727947)Document filed by BRENDON NELSON..(Cabeceiras, Alexander) Modified on 1/29/2021 (jgo). (Entered: 01/28/2021)

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