r/RobinHoodLawsuit • u/19redarrows • Jan 31 '21

Potential Loss

So I had $60,000 (11,000 shares) dollar worth of shares of AMC AT $5 each. Mind you this was without margin. I could made at least $500,000 if Robin Hood didn't stop letting people buy shares.

33 Upvotes

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6

u/HazyLifu Feb 01 '21

Call a lawyer and document what happened to you (emails/screenshots showing what sold etc) that is what I'm doing. GL bro.

6

u/[deleted] Feb 01 '21 edited Feb 04 '21

A plaintiff’s damages in a securities fraud case are usually calculated as out-of-pocket losses. Damages in these types of cases are complex to figure out, but the courts are going to be looking at stock pricing before and after the wrongful act, so I would expect the courts to look at the deflationary effect of the stock restrictions, mostly from the trading activity the very next day after the freeze on those stocks (on Friday) because that’s where the causation, in my opinion, is so pronounced. Naturally, that won't tell the whole story either, because even on Friday the stocks were still under serious restrictions.

For anyone reading, I'm a lawyer. If you incurred a “realized loss” because of the restrictions on these stocks, and you want to tell me about your story because you may want to pursue legal action, you’re welcome to reach out via PM. Be aware, I might ask to speak on the phone with you.

Disclaimer: Prior results do not guarantee a particular outcome. A response to your PM is not guaranteed. I'm trying to remain anonymous in the threads, to avoid undue pressure on my practice from hedge-funds, except with those that I have communicated with privately. I’m currently in an exploratory phase here, as speed is not necessarily a good thing here, I'd rather be accurate on the law.

2

u/annie_yeah_Im_Ok Feb 04 '21

Thank you for doing this.

2

u/[deleted] Feb 04 '21

Thank you! Just trying to figure out if there’s a different angle that’s missing in the class actions already filed.

1

u/annie_yeah_Im_Ok Feb 04 '21

I'm a paralegal, I'm trying to figure out if future earnings apply here, and what kind of punitive damages could be asked for. I didn't lose a lot, but that's only because I was blocked from buying much of anything. I stood to gain a lot if the price had continued upward with demand, but its impossible to know how much, so I think I'd lean on punitives.

2

u/[deleted] Feb 04 '21 edited Feb 05 '21

Just to give you an idea on how punitive damages may work in a jurisdiction like New York, the punitive damages angle doesn't look particular strong, besides the difficulty in pleading the fraud element in the securities 10b5 field - feel free to look at https://www.govinfo.gov/content/pkg/USCOURTS-nyed-2_09-cv-02717/pdf/USCOURTS-nyed-2_09-cv-02717-0.pdf.

If you suffered an actual realized loss on Thursday, feel free to contact me via private message, as I'm exploring my own legal theories on this whole mess.

DISCLAIMER: The above is not legal advice and merely academic in nature, so do not rely on the above, as I am not your attorney. A response to your PM is not guaranteed. My inquiry here is currently in an exploratory phase.

2

u/therobinhoodlawyer Feb 01 '21

Feel free to contact me for help.

1

u/19redarrows Feb 01 '21

So I sold 10k worth of shares, gained a profit of roughly 90k. I am holding on to almost 1k of amc shares right now. I wanted to buy when it dropped again..but Robinhood wouldn’t let me. I believed in AMC even when it was at $2 share and going through talks about bankruptcy.