After experiencing outages on Monday during which several investors were unable to use their accounts, some are gathering up to sue the company for their failures.
New Twitter handle emerges
A new Twitter handle emerged on Tuesday which is gathering signatures to sue the trading app for its outage issues. The Twitter handle is called ‘Robinhood Class Action’ and aims to gather support against the company and build a case against it. It plans to sue the company for negligence and opening late on March 2, 2020. Over 1476 people have already come together for the cause.
However, the support on Twitter hasn’t helped their cause on Change.org. The petition’s page on the website which reads ‘Ban Robinhood Financial LLC from FINRA’ doesn’t have any identity verified signatories yet.
The furious outlook towards the company was generated after it faced outages on Monday. Some of the company’s clients were unable to see their balances while others were unable to access their accounts during the outage. Higher than usual volumes are being blamed for the event because other trading platforms like Charles Schwab, Fidelity and TD Ameritrade also faced similar problems last week. Their volumes ran higher than usual, causing outages for some users.
Investors unhappy with Robinhood
Monday morning brought some gains for users but they were unable to cash in because of Robinhood’s technical issues. The users started criticizing the company soon after the news of the issues became public.
The company also responded by acknowledging the issues and later tweeted,
“Robinhood is now fully restored. We know this has been frustrating and we will work diligently to provide the level of service you deserve.”
Robinhood has quickly gained more than 10 million users. Its commission-free trading model has become very popular among millennials. Other companies have also followed suit and are providing similar options to their users now. The six-year-old company raised $900 million recently at a valuation of $7.6 billion. It is also experiencing unprecedented growth because of its simple investing ideas and exposure to new asset classes like cryptocurrencies. It has doubled its userbase in the past one year.
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