Plaintiffs Fight Back in Citadel Lawsuit

The small investors suing Citadel Securities LLC are fighting back against its motion to dismiss their case:

Plaintiffs suing Citadel Securities and others over trading restrictions on “meme stocks” have filed a motion to strike the market maker’s recent court filing that leaned on the SEC’s report to dismiss the conspiracy charges.

Describing the notice as “incomplete and misleading,” they challenged Citadel Securities about its efforts to call the court attention to conclusions set out in the SEC’s report on the retail trading mania earlier this year.

Citadel’s reliance on the SEC report to defend itself is problematic. As I wrote here last week, the report barely even covered allegations of collusion between Citadel and Robinhood Markets, Inc. in limiting trading.

The lengthy report devotes just a single paragraph to the allegations. It also takes Citadel LLC CEO Ken Griffin and Robinhood CEO Vlad Tenev at their word.

What’s more, the report has no force of law:

The legal notice further explains that while the 45-page report was simply meant to describe events, the market maker had misinterpreted the regulatory body’s bulletins which, like all staff statements, have no legal force or effect.

Despite the serious allegations against his firm, Griffin still characterizes them as “a bad comedy joke.”

But Citadel could face billions in damages if it loses. Even for someone with Griffin’s wealth, that’s no laughing matter.

More on markets:

Citadel Demands Dismissal of Lawsuit, Citing SEC Report

Starting a Financial Plan from 0

AMC Fails to Deliver Jump 2700%

Photo: “Ken Griffin” by DanGPhotos1 is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/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!

Fundrise

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.

Misfits Market

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. 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s