Webull Hit With Class Action Lawsuit over GameStop Chaos

NEW YORK - Jan. 29, 2021 - PRLog -- On the evening of January 28, 2021 shortly before midnight, a class action was filed against Webull Financial LLC by Siri & Glimstad LLP on behalf of a class of individuals that suffered losses due to Webull's actions to restrict trading on its online stock trading platform.  Webull, on January 28, 2021, prevented its 11 million customers from trading various stocks that had been rising earlier in the day, including those of GameStop (GME), AMC Entertainment (AMC) and Koss (KOSS).

Webull's move has prompted many investors and pundits to declare that the market is "rigged" against retail investors.  The class action complaint, alleges that "Webull's actions occurred in the midst of a rise in those companies' stock share prices and thereby deprived its customers, retail investors, of the ability to invest in the open-market and manipulate the open-market for the effected stock."  Webull's CEO denies this allegation and has blamed its clearing firm, Apex, for requiring these restrictions on trading due to regulatory capital requirements.

The class action complaint was filed by the attorneys Aaron Siri, Mason Barney and Elizabeth Brehm of Siri & Glimstad LLP.

Filed with the UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
Case # 1:21-cv-00799