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Ex-securities fraud lawyer here. Allow me to explain what is happening in lay-person terms.
Hedge funds bet that Gamestop stock was going down. Lots of individuals, via Reddit, gamed the market by buying low. Gamestop price goes up and hedge funds claim ruin.
BUT WAIT.
Hedge funds bet that Gamestop stock was going down. Lots of individuals, via Reddit, gamed the market by buying low. Gamestop price goes up and hedge funds claim ruin.
BUT WAIT.
Turns out it's NOT just individual players buying low, it's ALSO big traders winning.
Robinhood app (small traders) stops trading on Gamestop and its follow-up, AMC.
Price of stock plummets.
Hedge funds win again.
Robinhood app (small traders) stops trading on Gamestop and its follow-up, AMC.
Price of stock plummets.
Hedge funds win again.
This is my point: American capitalism is a casino.
And the house always wins.
And the house always wins.
Also, this is a good moment to quote Audre Lorde:
"For the master's tools will never dismantle the master's house. They may allow us temporarily to beat him at his own game, but they will never enable us to bring about genuine change."
"For the master's tools will never dismantle the master's house. They may allow us temporarily to beat him at his own game, but they will never enable us to bring about genuine change."
(If I could, I would send this quote ^^^ to every person saying that we're witnessing a class war or Occupy 2 or some shit. We're not. This is why.)
And now, the plot thickens. https://twitter.com/carlquintanilla/status/1354838765357985796
This term would appear to negate any possibility of litigation unless it is deemed unenforceable.
So class action lawyers are fast and this will doubtless end up as an MDL (multi district litigation panel) case.
The facts are still unknown though, and if the TOS has an arbitration clause, this case will be kicked out of court. https://twitter.com/phil_lewis_/status/1354839676482367488
The facts are still unknown though, and if the TOS has an arbitration clause, this case will be kicked out of court. https://twitter.com/phil_lewis_/status/1354839676482367488
Also gonna add that there will be a rush of these cases in the next few days as the class action lawyers try to position themselves as lead counsel and therefore take a big chunk off the top of any settlement, if they get one.
There are a multitude of issues though— TOS, rule 23
There are a multitude of issues though— TOS, rule 23
that could preclude the case proceeding.
I personally have questions about whether it could survive a Motion to Dismiss based on what I’ve seen this morning.
I personally have questions about whether it could survive a Motion to Dismiss based on what I’ve seen this morning.
Also, reminder: the class has to be certified AFTER the motion to dismiss is denied (which is a big if) and we are YEARS away from $$ going back to buyers if the case even survives (again, BIG IF).
Ok, so it looks like the TOS has an arbitration clause.
Given recent court precedent, this case is not likely to proceed in federal court.
Given recent court precedent, this case is not likely to proceed in federal court.
And for the record, I assumed that the arbitration clause included an anti-class-action provision, because they always do.
I was right. A private civil class action isn't going anywhere in federal court.
Criminal prosecution is another story, depending on the facts.
I was right. A private civil class action isn't going anywhere in federal court.
Criminal prosecution is another story, depending on the facts.
Word has it that Robinhood is now liquidating buys without the consent of individual users.
Bad news: it can do that too under the clause screengrabbed above, without consent, as long as it's done in writing, which it is.
Bad news: it can do that too under the clause screengrabbed above, without consent, as long as it's done in writing, which it is.
Always good to have confirmation from @ewarren. We need regulation. https://twitter.com/therecount/status/1354891756735754243
We’re even using the same language. #WarrenDem for life. https://twitter.com/senwarren/status/1354907630876160002
In comes Tish James. Gooooo. https://twitter.com/carlquintanilla/status/1354916544480993280
