{"id":260807,"date":"2021-05-27T22:55:15","date_gmt":"2021-05-27T19:55:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/robinhood-loses-bid-to-block-massachusetts-regulators-case-against-it\/"},"modified":"2021-05-27T22:55:15","modified_gmt":"2021-05-27T19:55:15","slug":"robinhood-loses-bid-to-block-massachusetts-regulators-case-against-it","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/robinhood-loses-bid-to-block-massachusetts-regulators-case-against-it\/","title":{"rendered":"#Robinhood loses bid to block Massachusetts regulators\u2019 case against it"},"content":{"rendered":"

“#Robinhood loses bid to block Massachusetts regulators\u2019 case against it<\/strong>”<\/p>\n

\n

A Massachusetts judge on Thursday rejected\u00a0Robinhood\u2019s bid to block state regulators from moving forward with their enforcement action alleging that the online brokerage encourages inexperienced investors to place risky trades without limits.<\/p>\n

Suffolk County Superior Court Judge Kenneth Salinger said\u00a0Robinhood\u00a0could continue challenging in court the validity of the state\u2019s new fiduciary rule, which underlies Massachusetts Secretary of State Bill Galvin\u2019s case against it.<\/p>\n

But Salinger said it did not follow that he should in the interim block Galvin, who oversees the state\u2019s securities division, from moving forward with his case, noting that some of the claims were not based on the new regulation.<\/p>\n

\u201cIf the court were to strike down the challenged regulation, the division would still be entitled to press its separate claims that\u00a0Robinhood\u2019s alleged conduct was nonetheless unethical or dishonest,\u201d Salinger wrote.<\/p>\n

He requested further briefing on whether\u00a0Robinhood\u2019s challenge to the fiduciary rule should be put on hold pending the outcome of Galvin\u2019s administrative case, though he said it would be \u201cunusual\u201d for a judge in his position to do so.<\/p>\n

Debra O\u2019Malley, a spokeswoman for Galvin, said he was pleased with the ruling. Menlo Park, California-based\u00a0Robinhood\u00a0had no immedia<\/a>te comment.<\/p>\n

\"Robinhood
Massachusetts regulators expressed concern about Robinhood\u2019s operations even before the Game<\/a>Stop rally that put a greater spotlight on Robinhood and similar retail trading app<\/a>s.<\/figcaption>
NurPhoto via Getty Images<\/span><\/figcaption><\/figure>\n

Galvin announced the case against\u00a0Robinhood\u00a0in December, before the social media-driven rally in stocks like GameStop, caused by retail investors buying the stocks on platforms that included\u00a0Robinhood\u00a0and other apps.<\/p>\n

He accused the app-based service of using strategies that treated trading like a game to lure young, inexperienced customers, including by having confetti rain down on the user\u2019s screen for each trade made on its app.<\/p>\n

Robinhood\u00a0sued in April, arguing Galvin lacked authority to adopt the fiduciary rule and that it conflicted with federal law. The Securities and Exchange Commission in 2019 adopted its own rule for brokerages that rejected the standard Galvin was enforcing.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Robinhood loses bid to block Massachusetts regulators\u2019 case against it” A Massachusetts judge on Thursday rejected\u00a0Robinhood\u2019s bid to block state regulators from moving forward with their enforcement action alleging that the online brokerage encourages inexperienced investors to place risky trades without limits. Suffolk County Superior Court Judge Kenneth Salinger said\u00a0Robinhood\u00a0could continue challenging in court the…<\/p>\n","protected":false},"author":1,"featured_media":260808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/05\/robinhood-fails-stopping-lawsuit.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[86706,107443,72128,70446,70939,70934],"class_list":["post-260807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-robinhood","tag-5-27-21","tag-gamestop","tag-lawsuits","tag-massachusetts","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260807","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=260807"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/260808"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=260807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=260807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=260807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}