The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of Robinhood Markets, Inc. (“Robinhood” or the “Company”) (Nasdaq: HOOD) issued in connection with its Initial Public Offering (“IPO”) conducted on or about July 30, 2021.
If you purchased Robinhood common stock issued in connection with the IPO, you may move the Court for appointment as lead plaintiff by no later than February 15, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Robinhood investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, text or email investorinfo@lchb.com, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Robinhood Securities Class Litigation
Robinhood, headquartered in Menlo Park, California, provides a platform through which investors can buy and sell stocks, exchange traded funds, and cryptocurrencies.
The action alleges that the registration statement and prospectus issued in connection with the Company’s IPO made representations that were materially inaccurate, misleading, and/or incomplete because they failed to disclose that, at the time of the IPO, Robinhood’s revenue growth was slowing significantly and were masked by transitory boosts of revenues from cryptocurrency transactions; and the Company’s purported investments in increasing its platform’s reliability were in fact inadequate, leaving Robinhood vulnerable to security breaches and disruptions in services.
On October 26, 2021, after markets closed, Robinhood revealed that (1) its total net revenue for the third quarter of 2021 was only $365 million, falling short of analysts’ estimates by nearly $73 million, and that its monthly active users (“MAUs”), funded accounts, assets under custody, and average revenue per user had all declined; (2) third quarter revenues from cryptocurrency transactions had fallen $182 million from the previous quarter; (3) net losses increased $11 million to $1.32 billion because of a $1.24 billion stock-based compensation expense; and (4) the Company reduced its full year revenue guidance to “less than $1.8 billion,” amounting to maximum growth of 85% for the year, which fell short of analysts’ estimates of 111% growth. On this news, the price of Robinhood stock fell $4.13 per share, or 10.43%, from its closing price of $39.57 on October 26, 2021, to close at $35.44 per share on October 27, 2021, on extremely heavy trading volume.
On November 8, 2021, after the markets closed, the Company announced that on November 3, 2021 it had experienced a “data security incident,” wherein an “unauthorized third party” had obtained email addresses for approximately five million Robinhood users, the full names of about two million users, and additional personal information of 310 other users, including names, dates of birth, and zip codes, with ten of those users suffering breaches that were even “more extensive.” On this news, the price of Robinhood stock fell $1.28 per share, or 3.37%, from a closing price of $37.98 on November 8, 2021, to close at $36.70 per share on November 9, 2021, on elevated trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220120005361/en/
#HOOD INVESTOR ALERT: February 15, 2022 Filing Deadline in #Securities #ClassAction – Contact Lieff Cabraser $HOOD #RobinhoodMarkets #StockNews
Contacts
Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
Telephone: 1-800-541-7358
