SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Robinhood Markets, Inc. - HOOD

Sunday, 23. January 2022 19:56

NEW YORK, Jan. 23, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Robinhood Markets, Inc. (“Robinhood” or the “Company”) (NASDAQ: HOOD). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.

The investigation concerns whether Robinhood and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around July 30, 2021, Robinhood conducted its initial public offering (“IPO”), offering 55 million shares of common stock to the public at a price of $38.00 per share. Then, on October 26, 2021, Robinhood reported its third quarter 2021 financial results, revealing that its total net revenue for the period between July 1, 2021 and September 30, 2021—the same period during which the Company conducted it IPO—came in at $365 million, missing analyst estimates by nearly $73 million. Robinhood also reported declines in its monthly active users (“MAUs”), funded accounts, assets under custody, and average revenue per user. Robinhood also disclosed that third-quarter transaction-based revenue from cryptocurrency trading, which in the lead up to the IPO had been the bulk of the Company’s revenues, was only $51 million, well below the $233 million that Robinhood earned from cryptocurrency trading in the second quarter. Robinhood’s net losses also skyrocketed from $11 million to $1.32 billion due to a $1.24 billion stock-based compensation that was tied to the stock’s post-IPO performance, the initial rally in which had triggered a massive payout to Chief Executive Officer and President Vladimir Tenev and Chief Creative Officer Baiju Bhatt. Robinhood also guided for “less than $1.8 billion” in revenue for the full year, implying a maximum 85% growth, which fell well short of analyst expectations of 111%. On this news, Robinhood’s stock price fell $4.13 per share, or nearly 10.5%, to close at $35.44 per share on October 27, 2021. 

Finally, on November 8, 2021, Robinhood disclosed that it had experienced a “data security incident” on November 3, 2021, admitting that an “unauthorized third party” had obtained email addresses for approximately five million users and the full names of a different group of approximately two million users, indicating that the attack potentially affected nearly 40% of Robinhood’s MAUs. Moreover, Robinhood reported that the additional personal information of 310 other users, including their names, dates of birth, and zip codes, were exposed, and that 10 users within that group had suffered even “more extensive” data breaches. On this news, Robinhood’s tock price fell another $3.49 per share, or 9.19%, over the following two trading sessions, to close at $34.49 per share on November 10, 2021.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980

 


Related Links: 
Author:
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.