AMC Entertainment (NYSE:AMC) CEO Adam Aron is seeking to file a new lawsuit against trading platform Robinhood (NASDAQ:HOOD).
Robinhood on Monday reported AMC Entertainment had filed for bankruptcy stating the following:
“This company has filed for bankruptcy. This typically happens when companies are close to running out of money or have trouble repaying their outstanding debts.”
“What the DUCK !!!!! I am getting multiple reports that Robinhood briefly posted today that AMC filed for bankruptcy.
How can companies like Robinhood do this?
So ludicrous, so wrong, so irresponsible.
On Friday, we report Q1 earnings, and will announce our sizable cash position,” said AMC CEO Adam Aron in a statement on social media.
He later wrote:
“I am so Ducking angry about this. They are either incompetent or evil, and either is absolutely inexcusable. Obviously, there is no truth to their postings. Outrageous behavior. I have already asked our lawyers if we can sue the Dastards. #IncompetentEvil”
In March, Robinhood and other brokerages reported AMC Entertainment at a $417 billion market cap and even $421 billion market cap, so this is not the first time users have reported misinformation from the platform.
Shareholders have urged the CEO for years now to look into the manipulation of AMC Entertainment stock and into ‘short and distort’ campaigns used to defame the company during its toughest years.
Robinhood Responds to AMC Bankruptcy Notice
Robinhood responded on the AMC bankruptcy notice after investors and the CEO raised concerns about the lucrative reporting on social media.
The following statement was released by the broker:
“On 5/1/23 at 1:45 pm ET, Robinhood experienced a technical issue leading to an incorrect banner being applied to AMC. The banner was removed at 1:48 pm ET. We apologize for this error.”
But investors now want to know the company’s process that led them to mistakenly publishing this error.
Others allege the notice was a malicious intent on the movie theatre company, just days before Q1 earnings.
For years now, Wall Street and affiliates have used media tricks to their advantage in hopes of creating panic and steering investors away from investing in the movie theater company.
Will AMC CEO Adam Aron really file a lawsuit against Robinhood?
In the past, the CEO stated the company had been in contact with the NYSE and FINRA to “look closely at the trading of the stock”, but investors have yet to be updated on any new information.
Robinhood Lawsuit News
Robinhood is currently being sued in a new class action lawsuit by Klafter Lesser LLP, Pessah Law Group, and PC and Chelin Law Firm in California.
The firms are seeking to represent investors who held call options on the Robinhood trading platform as of the close on January 27, 2021 to purchase any of the following stocks:
American Airlines Group Inc. (NASDAQ:AAL), AMC Entertainment (NYSE:AMC), BlackBerry Limited (NYSE:BB), Bed Bath & Beyond Inc. (NASDAQ:BBBY), GameStop Corp. (NYSE:GME), or Nokia Corporation (NYSE:NOK).
The latest Robinhood class action lawsuit alleges that on January 28, 2021, Robinhood prohibited purchases of the stocks underlying the affected options on its platform and also prohibited purchases of the exercise of the affected options, and only allowed the closing out of such positions.
The lawsuit further alleges that during the period January 29, 2021 through February 4, 2021, Robinhood imposed significant limits on any purchases and continued to prevent the exercise of the affected options on its trading platform.
Consequently, the value of the affected options dropped dramatically and remained suppressed throughout the month, causing investors to suffer big losses, says the press release.
Related: AMC Lawsuit to Be Resolved in Late June
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