Well in case you haven't been paying attention
to the news over the last few weeks, the stock
market has been an absolute roller coaster
with massive highs and massive lows, mostly
massive lows though in the last week or so.
But just imagine frustration if you will,
if you were a trader and suddenly somehow
you got locked out of being able to trade
for an entire day.
That could result in thousands or possibly
depending on your investing level, millions
of dollars in losses just from being locked
out and that is actually what a new class
action lawsuit is claiming against the very
popular securities trading app.
And I have Scott Hardy from top class actions
with me to explain what's happening and Scott,
you know, reading through this story, I, I
felt a ton of sympathy for these people because
there's a lot of people out there, they may
not be professional traders out there on wall
street, but they do this regularly, all throughout
the day using these apps.
We see them advertised all the time and then
to get locked out, especially in the middle
of the insanity happening with the market
today.
That's huge, huge losses for these individuals.
So, so explain what happened here.
Sure.
So you've got 10 million plus Robinhood users.
Robinhood has been one of the most favorite
platforms for day traders, as you said.
You have people that are out there that, you
know, are Uber drivers at night and they're
day traders during the day.
Anytime you have a massive bull market, it's
going to happen, right?
People are just in there.
They're making money, they can't make a mistake.
And so Robinhood, I've got a lot of day trader
friends that are sitting there saying, use
Robinhood.
It's no fee.
It's wonderful.
It's been great.
I've made a lot of money on it.
But lo and behold, you have the trading system
go down and so people lost tons of money due
to a system glitch.
And of course you have other friends of mine
that were trying to sell and they got talked
out of it and then the market tanked when
things like that happen, you know, these,
these traders are losing thousands, hundreds
of thousands of dollars, even millions of
dollars because they can't perform a trade.
And so in this case, you had the Robinhood
app, which actually went down as the, as the
stock market rose and so people were trying
to buy to get in so they could, they could,
you know, just do either quick buys, quick
sells, quick trades, and there were, they
were completely shut out.
And the CEO has been like, my bad, sorry guys.
Oopsie.
We're cool, right?
You know.
No, no, we're not cool.
Especially on the, on the day in question,
you know, the Dow Jones rose 1294 points,
NASDAQ gained 384 points.
So this was one of those, what's becoming
very rare, good days on the market and they
just couldn't do anything.
You know, they're, they're sitting there holding
their stocks or not holding anything wanting
to buy in, hoping to jump in on this and they
couldn't do a thing because somebody couldn't
keep an app running.
That, that, that's a big screw up, you know,
that undermines your entire service there.
You got one thing to do and that is to make
sure this app works and they couldn't do that
and people lost a ton of money through no
fault of their own other than we chose this
product because we trusted them and they screwed
us here.
Exactly, you know, our website was down partially
for about 10 minutes yesterday and I had hundreds
of people saying, what the heck Scott?
And, you know, if they can't submit a claim
on the website, well that's a bummer.
Right?
But they're not losing money, you know, so
we got that fixed up in just a couple of minutes,
which was fantastic.
But when you're actually sitting there and
you're a platform that people are trusting
and they're trying to buy and sell securities,
you can't have any downtime at all, especially
when you have a massive market upswing like
that and people are like, yes, we have this
big, massive upswing.
I'm going to short these stocks.
I'm going to make a lot of money right now,
and boom, they can't.
They're out of luck.
So yeah, massive lawsuits and hopefully Robhinhood,
because people love the Robinhood platform.
Some of my friends, I'm sure they're still
sticking with it.
Hopefully this was just a lesson for them
because it is such a well liked platform for
day traders that they'll fix this.
Make sure they're super reliable again, and
get over it because their fans, you know,
if it happens once, ugh.
If it happens twice, they're going to be gone.
Absolutely.
For more information about this issue, follow
the link in the description of this video,
go to topclassactions.com and while you're
there, make sure you sign up for their weekly
newsletter.
Scott Hardy, top class actions, always a pleasure.
Thank you.
You're welcome.
Thanks for your time, Farron.
