Court permits Robinhood to depose seven brokers in short squeeze lawsuit
The Florida Southern District Court has allowed Robinhood to take additional depositions in a lawsuit concerning the January 2021 short squeeze.
The relevant order was issued on January 23, 2024.
In this lawsuit, a group of traders allege that Robinhood manipulated the securities market by imposing trading restrictions at the height of the so-called Meme Stock frenzy. Robinhood intends to prove that extreme market volatility driven by retail investors’ investment in “meme stocks” led to unprecedented collateral requirements that required Robinhood to put in place the challenged trading restrictions.
As per the latest Court order, Robinhood may take the deposition of the NSCC representative in person on a date agreed by the parties.
As for the depositions of the seven brokers identified in the Motion, Robinhood may take the depositions of a representative from each by remote or virtual means for a half day as to each. Let’s recall that the seven brokers are: Apex; Axos; Interactive Brokers; TradeStation; E*TRADE; TD/Charles Schwab and Merrill Edge.
These firms implemented similar trading restrictions during the relevant period.
As for the depositions of the six stock issuers identified in the Motion, Robinhood may take the depositions of a representative from each by remote or virtual means in accordance with the duration requirements set forth in Federal Rule of Civil Procedure 30(d)(1).
The parties must endeavor to complete all depositions by March 29, 2024.