Robinhood Wins Dismissal of Shareholder Lawsuit Over 2021 IPO
A U.S. judge on Friday dismissed a lawsuit accusing Robinhood Markets Inc. of misleading investors about the online brokerage’s financials and growth prospects when conducting its 2021 initial public offering.
U.S. District Judge Edward Chen in San Francisco found no proof that disclosures in Robinhood’s IPO materials were false or misleading, or that declines in key metrics shortly before the company went public in July 2021 were historically extraordinary.
He said Robinhood’s warnings about future growth were “not particularly robust,” but were sufficient.
“Plaintiffs thus failed to plead that Robinhood did not disclose ‘material factors’ that would make an investment in Robinhood speculative or risky,” Chen wrote….