A lawsuit was filed on behalf of investors in Robinhood Markets, Inc. (NASDAQ: HOOD) shares.

An investor, who purchased shares of Robinhood Markets, Inc. (NASDAQ: HOOD), filed a lawsuit over alleged violations of Federal Securities Laws by Robinhood directors and officers, and the underwriters of Robinhood’s July 2021 initial public offering (the “IPO” or the “Offering”).

Investors who purchased shares of Robinhood Markets, Inc. (NASDAQ: HOOD) have certain options and for certain investors are short and strict deadlines running. Deadline: February 15, 2022. NASDAQ: HOOD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

Menlo Park, CA based Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies.

Robinhood Markets, Inc. commenced its initial public offering (“IPO”) on July 30, 2021, issuing 55 million shares to the investing public at $38 per share, anticipating proceeds in excess of $2 billion.
After the markets closed on October 26, 2021, Robinhood Markets, Inc. announced its third quarter financial results, revealing revenue that fell short of Wall Street estimates.

Shares of Robinhood Markets, Inc. (NASDAQ: HOOD) from $85.00 per share in August 04, 2021, to as low as $17.08 per share on December 17, 2021.

According to the complaint the plaintiff alleges on behalf of purchasers of Robinhood Markets, Inc. (NASDAQ: HOOD) common shares, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that Robinhood’s registration statement and prospectus used to effectuate its IPO contained 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 experiencing a major reversal, with transaction-based revenues from cryptocurrency trading serving only as a short-term, transitory injection, masking what was actually stagnating growth. In addition, the Company’s “significant investments” in enhancing the reliability and scalability of its platform were patently inadequate and/or defective, exposing Robinhood to worsening service-level disruptions and security breaches, particularly as the Company scaled its services to a larger user base.

Those who purchased shares of Robinhood Markets, Inc. (NASDAQ: HOOD) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.