![]() ![]() "This matter was dismissed with prejudice following a settlement between the parties," Robinhood said in its S-1 filing for its initial public offering. The lawsuit accused Robinhood of wrongful death, negligent infliction of emotional stress and unfair business practices. ![]() Kearns took his own life in June 2020 after mistakenly believing he owed $730,000 and his desperate attempts to get in touch with Robinhood went unanswered, according to his family. The family of Alex Kearns, a college student who traded options on Robinhood, accused the startup in a February lawsuit of luring inexperienced investors to take big risks in sophisticated financial instruments without providing the necessary customer support and investment guidance. He’d died at 20 in the middle of a mental health crisis. Kearns, a 20-year-old University of Nebraska student, died by suicide this month after seeing a negative 730,165 cash balance on his account for the free-trading app Robinhood. My brother’s suicide was the lead headline in our hometown newspaper. She clawed the air my brother had recently occupied, her fetal ball so tight she looked like a child. Terms of the agreement were not disclosed. Later that day, my mother collapsed and cried, My son, my son. The controversial trading app disclosed the settlement on Thursday in its IPO filing. Robinhood has settled a wrongful death lawsuit filed by the family of a 20-year-old trader who died by suicide after seeing a negative account balance of $730,000. In a statement to the BBC, Robinhood said they were “devastated” by Alex’s death and hade made improvements to their platform.A Naperville family is suing the Robinhood stock trading app after their son died by suicide after being led to believe he suffered massive financial losses. The app showed that he had a $730,000 negative cash balance, which is not the same as regular debt, but caused Alex to panic and reach out to Robinhood, who did not explain the distinction and instead demanded large cash deposits to cover the balance. Not only was Alex put in a position to lose hundreds of thousands of dollars without investment guidance or effective customer service, the suit claims, but he was misled into thinking that he had. It is difficult to maintain mental health in our constantly changing world, and individuals lose the battle every day. “Not only did Robinhood permit Alex to open the account, but when Alex was a freshman in college later that year, it permitted him to trade options.” 23 Famous People Who Committed Suicide ©Provided by Music In Minnesota. ![]() “Though Alex was merely a senior in high school when he opened an account with Robinhood and had little or no income, Robinhood determined he was qualified enough to enter into the world of trading sophisticated financial options,” the Kearnses said in the complaint. The lawsuit, which seeks unspecified damages, also alleges negligent infliction of emotional distress and unfair business practices, claiming that Alex was lured into using Robinhood through the app’s strategy of “gamifying” their services to attract inexperienced investors. Alex’s parents, Dan and Dorothy Kearns, said their son was unable to receive adequate support from customer services before his suicide. The complaint states that 20-year-old Alex Kearns was led to believe he had fallen $730,000 in debt when he took his life in June. The family of a 20-year-old man who committed suicide last year have sued trading app Robinhood over his death.
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