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Robinhood, Citadel Win Dismissal of Meme-Stock Lawsuit

Federal judge says retail investors failed to show collusion
Suit said market-maker pressured brokerage to restrict trades

Photographer: Tiffany Hagler-Geard/Bloomberg

By

Katherine Doherty and

November 18, 2021, 3:55 PM UTCUpdated onNovember 18, 2021, 5:23 PM UTC

Citadel Securities and Robinhood Markets Inc. won dismissal of a proposed class-action lawsuit brought by retail investors who accused the firms of colluding during January’s meme-stock frenzy.

U.S. District Judge Cecilia Altonaga in Miami said that the plaintiffs failed to show there was any agreement between Citadel Securities and Robinhood to act in concert. In a Wednesday ruling, she dismissed the case without prejudice, giving the investor group until Dec. 20 to possibly file an amended complaint.