1 MIN READ
The family of a college student who killed himself after thinking he had lost a fortune using Robinhood sued the free trading app on Monday.
A message left behind by Alex Kearns asked how it was that a 20-year-old with no income could get access to nearly $1 million of financial leverage using Robinhood, according to the suit filed in Silicon Valley, where the app is based.
The suit accuses Robinhood of causing the Illinois man’s death along with unfair business practices, and asks for unspecified damages.
Kearns was in his final year of high school when he opened a Robinhood account, according to the suit.
He used the app to start trading options in his freshman year of college, and a series of trades resulted in him finding his account was $730,000 in the red, the suit detailed.
The suit comes after traders who banded together over Reddit and other social media platforms in recent weeks used Robinhood to make massive share purchases of GameStop, AMC Entertainment and other struggling companies that wealthy investors had bet against.
The campaign, intended to make hedge funds and other large investors suffer, caused the share prices of these companies to soar, and caught the attention securities regulators.