![]() “We remain committed to making Robinhood a place to learn and invest responsibly.” “We were devastated by Alex Kearns’ death,” Robinhood said. In a statement, Robinhood explained it has made a series of improvements to its options offering, including by providing guidance to help customers, updates on how it displays buying power and live voice support for customers with open options positions. Robinhood sparked outrage last month by temporarily suspending purchases of GameStop - a controversial step that prompted Congress to schedule hearings. Those risks have been further magnified recently with the rise and fall of GameStop, which was catapulted by an army of traders on Reddit. ![]() The tragedy illustrated the potential dangers of the free-trading boom set off in large part by Robinhood, which has enjoyed explosive growth during the pandemic. “Tragically, Robinhood’s communications were completely misleading because, in reality, Alex did not owe any money,” the lawsuit said. The damages they are seeking will be determined at a later date. In addition to wrongful death, the complaint filed by the Illinois family accuses Robinhood of negligent infliction of emotional stress and unfair business practices. “Robinhood built out its trading platform to look much like a videogame to attract young users and minimize the appearance of real-world risk,” reads the lawsuit filed Monday in California by Kearns’ parents Dan and Dorothy and sister Sydney. The parents and sister of Alexander Kearns accused Robinhood of luring inexperienced investors like their son to take big risks in sophisticated financial instruments such as the options trading he engaged in - without providing the necessary customer support and investment guidance. ![]() Robinhood also shares articles on the risks of options trading.(CNN) - Robinhood is being sued for the wrongful death of a 20-year-old college student who died by suicide last summer after he saw a negative balance of $730,000 in his trading account and mistakenly believed that was the sum of money he owed. Before users can trade options anymore, “How much investment experience do you have?” They have to answer the question. The Robinhood team made some updates to the app after Alex Kearns passed away. It was stated that these practices “appealing to young and inexperienced investors” could be harmful. The state of Massachusetts financial regulator William Galvin said there should be a national standard for practices such as Robinhood. He thought that if he didn’t do something himself, his family would have to pay the debt. “Alex thought he had to repay the damage on his account. The following statement was given in the lawsuit filed: It is alleged that Robinhood’s support team wouldn’t have committed suicide if they had inspected his account early and found that he could cover the damage instead of sending him an automated email. Kearns’ family sued Robinhood on February 8, 2021. If you have any questions regarding your position, please contact us. We have determined that you meet the margin requirements and we are unblocking your account. The email sent by the Robinhood team was as follows: Robinhood’s support team returned the day Kearns committed suicide. The trader, who studied at the University of Nebraska, committed suicide after seeing that his account was at such loss. He committed suicide when he saw that he was in harm According to the report of CBS News, the young investor was told that he had to deposit 178 thousand 612 dollars into his account within a few days. An automatic return was made to him after hours and he was informed that there was “insufficient balance” in his account. ![]() His response was, “We will get back to you as soon as possible. Can anyone be interested? ” sent a message as. The positions I open / close must be in balance with each other. The investor told the support team, “I see a much larger amount in my account than it should have. Kearns tried to contact the company’s customer service after receiving this message. Kearns received an e-mail from Robinhood on the evening of the same day and found that it was $ 730,165 in losses, not $ 10,000 as he thought. He thought that the maximum loss he could get from this transaction would be $ 10,000. With this hope, the young investor opened a position on June 11. Kearns started trading options in hopes of making high profits. ![]()
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