{"id":173750,"date":"2021-02-09T04:28:00","date_gmt":"2021-02-09T01:28:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/robinhood-sued-by-family-of-young-trader-who-killed-himself\/"},"modified":"2021-02-09T04:28:00","modified_gmt":"2021-02-09T01:28:00","slug":"robinhood-sued-by-family-of-young-trader-who-killed-himself","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/robinhood-sued-by-family-of-young-trader-who-killed-himself\/","title":{"rendered":"#: Robinhood sued by family of young trader who killed himself"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a21f03278d2d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a21f03278d2d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/robinhood-sued-by-family-of-young-trader-who-killed-himself\/#Family_claims_Robinhood_preys_on_inexperienced_traders_and_that_its_%E2%80%98reckless_conduct_created_%E2%80%98a_time_bomb\" >Family claims Robinhood preys on inexperienced traders, and that its \u2018reckless conduct\u2019 created \u2018a time bomb\u2019<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/robinhood-sued-by-family-of-young-trader-who-killed-himself\/#Mike_Murphy\" >Mike Murphy<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: Robinhood sued by family of young trader who killed himself<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Family_claims_Robinhood_preys_on_inexperienced_traders_and_that_its_%E2%80%98reckless_conduct_created_%E2%80%98a_time_bomb\"><\/span>\n  Family claims Robinhood preys on inexperienced traders, and that its \u2018reckless conduct\u2019 created \u2018a time bomb\u2019<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000159873\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The family of a 20-year-old trader who killed himself after seeing a massive negative balance in his account sued online brokerage Robinhood for wrongful death on Monday.<\/p>\n<p> The parents and sister of Alex Kearns said Robinhood preys on inexperienced traders and that the company\u2019s \u201cmisleading communications\u201d caused him to panic, ultimately leading to his death.<\/p>\n<div class=\"paywall\">\n       \u201cThis case centers on Robinhood\u2019s aggressive tactics and strategy to lure inexperienced and unsophisticated investors, including Alex, to take big risks with the lure of tantalizing profits,\u201d  the complaint said. \u201cRobinhood\u2019s aggressive ploys to attract young customers, combined with its flagrant disregard for its duty of care to its customers, creates a time bomb that was destined to lead to the type of tragedy that h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened to Alex.\u201d<\/p>\n<p>Kearns\u2019 death drew headlines last summer, after the young trader was notified that an options trade he had conducted had resulted in a $730,000 loss and that he needed to im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely deposit around $178,000 to resolve the situation. With no way to pay such a sum and afraid his family would be forced to repay it, Kearns rode his bike in front of a train. <\/p>\n<p>\u201cHow was a 20-year-old with no income able to get assigned almost $1 million worth of leverage?\u201d he wrote in a goodbye note to his parents, according to the lawsuit.<\/p>\n<p>Robinhood\u2019s communications with Kearns did not mention that he already held options that would erase the negative balance once settled, the complaint said. <\/p>\n<p><strong>Read: <\/strong> Trader beware: Read this before buying stocks with investment apps like Robinhood <\/p>\n<p>Robinhood had no customer-support phone number, and Kearns\u2019 emails to the company got only automated replies, his family said. A day after his death, Robinhood sent him an automatic email saying the margin call had been made and he did not owe anything.<\/p>\n<p> \u201cHe thought he blew up his life. He thought he screwed up beyond repair,\u201d his father, Dan Kearns, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/alex-kearns-robinhood-trader-suicide-wrongful-death-suit\/\" class=\"icon none\">told CBS News on Monday<\/a>.<\/p>\n<p>The lawsuit blames Robinhood\u2019s \u201creckless conduct\u201d for Kearns\u2019 death, claiming the company made it too easy for beginning traders with little money and little investing knowledge to make huge trades, and offered insufficient customer support.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p> \u201cWe were devastated by Alex Kearns\u2019 death,\u201d Robinhood said in a statement. \u201cSince June, we\u2019ve made improvements to our options offering.\u201d <\/p>\n<p>Robinhood, which is popular with younger traders, had been criticized for \u201cgamifying\u201d stock trading and encouraging risky behavior. It\u2019s also facing lawsuits for recent moves to restrict trading of a number of heavily shorted stocks, such as <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop Corp.<br \/>\n        GME,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203755179\/composite\" class=\"negative\">-5.91%<\/bg-quote><span>,<\/span><br \/>\n       following wild trading that was stoked by online message boards.<\/p>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Mike Murphy\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Mike_Murphy\"><\/span>Mike Murphy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D27081304066%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#: Robinhood sued by family of young trader who killed himself&#8221; Family claims Robinhood preys on inexperienced traders, and that its \u2018reckless conduct\u2019 created \u2018a time bomb\u2019 The family of a 20-year-old trader who killed himself after seeing a massive negative balance in his account sued online brokerage Robinhood for wrongful death on Monday. The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":167821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-173750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/173750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=173750"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/173750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/167821"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=173750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=173750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=173750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}