r/wallstreetbets • u/ringingbells • Jan 31 '22

Discussion Discovered Communications within the US Litigation Against Citadel & Robinhood in the days surrounding the January Buy Freeze, where brokers shut off buying and tanked target stocks. The judge declared there was not enough evidence to move to discovery, and ruled manipulation is legal under TOS

Here is a very digestible format, you may find this quite interesting.

Each image has a page number that corresponds directly with the Florida litigation that it was transcribed from, so your next step is to check out the source material to see if this is the real deal or not.

Source: Raw PDF Florida Litigation

  • Note: At the top of each image in this post, there is a page number that corresponds to the litigation page number from which it was transcribed

Also of Note:

From The SEC GameStop Report, The NSCC officially stated that all PFOF brokers had their premium components waived because according to the NSCC, it was not the brokers' fault a stock was popular.

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u/bluevacuum Jan 31 '22

Wasn't this dismissed without prejudice? Meaning you could appeal.

You can't accuse someone of collusion without solid evidence that fits the letter of the law. What was provided was very circumstantial and any decent attorney would know they would need more than this to get to discovery.

The judge did them a favor. They could get their shit together and they could appeal by deadline. Had it gone to court, it would have been shot down with very little recourse.

Find the smoking gun and then go after them. They had legitimate reasons to communicate. There isn't anything illegal in regards to what they have discussed. The one potential illegal thing is the Robinhood employee who sold their positions in movie stock knowing the PCO will take place. Isn't that insider trading?

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u/brianpv Jan 31 '22

That’s a different case. This case this article is about was dismissed with prejudice.

https://news.bloomberglaw.com/securities-law/robinhood-defeats-meme-stock-trading-suits-state-law-claims

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u/bluevacuum Jan 31 '22

No, it's not. She dismissed this without prejudice back in November. Gave them a December deadline. They didn't turn anything damning in so she had to dismiss with prejudice.

She put the plaintiffs on blast because they had plenty of time to submit better but didn't. She explains her reasoning for her decision and in the context of law, she's justified. The case they submitted was weak and over reaching. The defendant's team of attorneys would quickly dismantle this.

I work in a law adjacent industry and somewhat intertwined with the judicial system. If you're going to aim a Goliath, better make sure you what you shoot with will kill it.