Robinhood emblem is noticed on a smartphone in front of a exhibited inventory graph in this illustration taken, July 2, 2021. REUTERS/Dado Ruvic/Illustration

  • Retail traders filed two consolidated class action issues
  • Lawsuits assert antitrust and carelessness statements
  • Omitted some organizations that have been at first sued

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(Reuters) – Retail traders suing Robinhood Market place Inc and some others in excess of buying and selling constraints in the wake of a social media-fueled rally that squeezed brief sellers have submitted problems trying to get potentially billions in damages.

A single of the proposed class actions submitted on Tuesday in Miami federal courtroom accuses Robinhood and clearing brokerage Apex Clearing Corp of performing negligently in chopping off trades in late January. The other lawsuit alleges they and other individuals had been portion of an antitrust conspiracy with Citadel Securities LLC to spare the market place maker losses on small bets.

The grievances consolidate claims from dozens of lawsuits. They search for damages on behalf of nationwide courses of investors for losses on a number of stocks whose selling prices skyrocketed between January and February.

The limits erased $10 billion in marketplace capitalization for the firms, in accordance to a person of the complaints.

Lawyers for Robinhood, Apex and Citadel did not promptly reply to requests for comment on Tuesday.

U.S. District Choose Cecilia Altonaga is overseeing the multidistrict litigation centered on Robinhood’s selection to briefly restrict trading in GameStop Corp, AMC Enjoyment Holdings Inc and other shares that skyrocketed right after retail traders piled into them, producing losses for hedge funds and some others that had shorted them.

A partly redacted complaint alleges Robinhood and other retail brokerages were element of a conspiracy to dampen the rally by halting purchases. Higher degree executives and employees of Robinhood and Citadel Securities have been in make contact with all-around the time Robinhood limited trades, according to the complaint.

The other grievance filed Tuesday alleges that although Robinhood inspired and profited from higher-quantity buying and selling by its prospects, it was negligent in not keeping the funds needed to protect the trades.

Apex is also accused of carelessness in directing its retail brokerage shoppers to temporarily suspend purchases of GameStop, AMC and headphone maker Koss Corp over worries about funds necessities.

Many fiscal firms that were being sued in the instant aftermath of the rally were being not named in Tuesday’s grievances, such as Melvin Cash Administration LP, one particular of the hedge money hit by the limited squeeze.

A spokesman for Melvin declined to remark on Tuesday.

Tuesday was also the deadline for traders to search for the guide job in one more tranche of the litigation alleging violations of federal securities legislation.

The situation is In Re: January 2021 Limited Squeeze Buying and selling Litigation, U.S. District Court docket, Southern District of Florida, No. 21-2989.

For the antitrust plaintiffs: Joseph Saveri of the Joseph Saveri Regulation Agency and Frank Schirripa of Hach Rose Schirripa & Cheverie

For the plaintiffs alleging carelessness: Natalia Salas of The Ferraro Law Company and Peter Safirstein of Safirstein Metcalf

For Robinhood: Kevin Orsini of Cravath, Swaine & Moore

For Apex Clearing Corp: Angela Daker and Bryan Gant of White & Scenario

For Melvin Funds: Kevin Grange and Maya Ginsburg of Lowenstein Sandler