- #ROBINHOOD SUED FAMILY WHO COMMITTED SUICIDE FULL#
- #ROBINHOOD SUED FAMILY WHO COMMITTED SUICIDE FREE#
The complaint described the app’s features - which included a digital confetti effect when users make trades - as “gamification.” Galvin’s office filed a complaint against Robinhood in December. He said it rewards daily usage of the app and encourages frequent trading. Galvin points to the company’s marketing. “There was a very deliberate effort on the part of Robinhood to particularly entice younger, inexperienced investors.” “I think it demands some sort of national standard for this behavior,” he said. William Galvin, Massachusetts Secretary of the Commonwealth and the chief financial regulator in the state of Massachusetts, says online broker-dealers like Robinhood need greater regulation. We’re happy to help!”Ĭritics of Robinhood say the company has been reckless in its rush to sign up new investors.
#ROBINHOOD SUED FAMILY WHO COMMITTED SUICIDE FREE#
If you have any questions about your margin call, please feel free to reach out.
“Great news!” The email read, “We’re reaching out to confirm that you’ve met your margin call and we’ve lifted your trade restrictions.
The day after Alex took his own life, Robinhood sent an automated email suggesting the trade had been resolved and he didn’t owe any money. He thought he screwed up beyond repair,” Dan Kearns said. Later that day, the sheriff knocked on the Kearns family’s front door to deliver the news: Alex was dead.Īlso read Valentine: Glo offers up to 36GB free data to subscribers to celebrate seasonĪccording to the family’s attorneys, Alex may not have lost money at all, because of the way the options bets were structured. “Basically, ‘We’ll get back to you later.'”ĭan said his son just wanted an answer, but no one was there to respond. “And their response was a canned reply,” Dan Kearns said. In response, he received an automated message: “Thanks for reaching out to our support team!” The email said, “We wanted to let you know that we’re working to get back to you as soon as possible, but that our response time to you may be delayed.” The company assigned him a case number, 06849753. He asked for help understanding what had happened, and whether he could still offset the losses with another trade.Īlex wrote, “I was incorrectly assigned more money than I should have, my bought puts should have covered the puts I sold. Robinhood had no customer service phone number, but Alex emailed its support address three times late that night and the following morning. Have you read? FG plans to replace BVN with NIN – Pantami On 11 June 2020, Alex realized that his account had been restricted by Robinhood amid what appeared to be a negative balance of more than $700,000 on his account.Īt 03.26 a.m on 12 June, he received an automated email asking him to take “immediate action” to pay more than $170,000 within days. Mr and Mrs Kearns say they did not know the app had also approved him to buy and sell options – a risky financial instrument – despite a lack of financial experience. The app lets anybody buy and sell stocks, with no fees and no experience. But I do know I want to help people.'”Īlex was interested in investing, and before he graduated from high school, he opened an account with Robinhood. “And one night he says to me, he’s like, ‘Mom, I don’t - I don’t know what I want to do with my life yet.
#ROBINHOOD SUED FAMILY WHO COMMITTED SUICIDE FULL#
In an interview with “ CBS This Morning,” Dan and Dorothy Kearns said they had a full house last year after the pandemic brought their son Alex home early from college.ĭan said, “To be honest, it was really a joyful household.”ĭorothy Kearns said she and Alex would spend evenings in the kitchen. His parents filed a lawsuit, first obtained by CBS News, on Monday accusing Robinhood of wrongful death, negligent infliction of emotional distress and unfair business practices.ĭan and Dorothy Kearns say their son was unable to get help or support from customer services before he died. It recently made headlines for limiting sales of some shares to users after US retailer GameStop saw its stock surge.
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