Robinhood’s User Agreement will Likely Protect it

Robinhood's user agreement will likely protect it from lawsuits filed by customers after it blocked a trading rally in companies like GameStop. This rally was fueled on social media platforms. Reddit, a social media site, is protected by section 230 of the Communications Decency Act, which is title V of the Telecommunications Act of 1996. This protects platform owners from liability for what users of the site write on the message board.

At least a dozen proposed class action lawsuits accuse Robinhood of breaching its contract with users when it restricted trading of certain stocks that institutional investors, like Melvin Capital Management and Citron Capital, heavily shorted. A chat room where retail investors came together to communicate about the manipulation of the short...

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