Citadel Securities LLC has demanded the dismissal of a pending lawsuit in federal court in South Florida.
The grounds: the recent SEC report on January’s meme stock rally did not find collusion between its hedge fund arm, Citadel LLC, and Robinhood Markets, Inc.
The lawsuit alleges that Citadel pressured Robinhood to stop buy orders in meme stocks like GameStop Corp. and AMC Entertainment Holdings, Inc. Citadel had a substantial investment in Melvin Capital Management LP, which was losing billions shorting meme stocks.
Citadel’s demand for dismissal is absurd because the SEC report barely mentions the allegations in the Florida lawsuit. They are glossed over in a single paragraph, relying solely on testimony from the people involved (see footnote 92 above).
The SEC has decided to take Vlad Tenev (CEO of Robinhood), Gabriel Plotkin (CIO of Melvin), and Ken Griffin (CEO of Citadel) at their word. But any or all of those statements may be false.
What’s more, this lawsuit alleges that top executives of Robinhood and Citadel were in contact right before trades were limited.
That contact should be explored in detail. The court needs to review emails, internal chat messages, and phone records.
To take a whitewash of an SEC report and then use it to dismiss a lawsuit is ridiculous.
Let’s hope the court sees through it.
More on markets:
Citadel Builds Huge Position in AMC Call Options
Starting a Financial Plan from 0
AMC May Issue Its Own Cryptocurrency, Per CEO
Photo: “Ken Griffin” by DanGPhotos1 is licensed under CC BY 2.0
If you found this post interesting, please share it on Twitter/Reddit/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog!
Save Money on Stuff I Use:
Amazon Business American Express Card
You already shop on Amazon. Why not save $100?
If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.
Best of all: No fee!
This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.
If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.
My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.
Use this link to sign up and you’ll save $10 on your first order.
Tremendous 