Robinhood also shares articles on the risks of options trading. Before users can trade options anymore, “How much investment experience do you have?” They have to answer the question. The Robinhood team made some updates to the app after Alex Kearns passed away. It was stated that these practices “appealing to young and inexperienced investors” could be harmful. The state of Massachusetts financial regulator William Galvin said there should be a national standard for practices such as Robinhood. In a 30-page complaint filed in Californias Santa Clara County Superior Court, the family of Alex Kearns cited his last known written words How was a 20-year-old with no income able to get. He thought that if he didn’t do something himself, his family would have to pay the debt. “Alex thought he had to repay the damage on his account. The following statement was given in the lawsuit filed: It is alleged that Robinhood’s support team wouldn’t have committed suicide if they had inspected his account early and found that he could cover the damage instead of sending him an automated email. Kearns’ family sued Robinhood on February 8, 2021. If you have any questions regarding your position, please contact us.
We have determined that you meet the margin requirements and we are unblocking your account. The email sent by the Robinhood team was as follows: Robinhood has settled a wrongful death lawsuit filed by the family of a 20-year-old trader who died by suicide after seeing a negative account balance of 730,000. Robinhood’s support team returned the day Kearns committed suicide. The trader, who studied at the University of Nebraska, committed suicide after seeing that his account was at such loss. He committed suicide when he saw that he was in harm According to the report of CBS News, the young investor was told that he had to deposit 178 thousand 612 dollars into his account within a few days. An automatic return was made to him after hours and he was informed that there was “insufficient balance” in his account. His response was, “We will get back to you as soon as possible. Can anyone be interested? ” sent a message as. The positions I open / close must be in balance with each other. The investor told the support team, “I see a much larger amount in my account than it should have. Kearns tried to contact the company’s customer service after receiving this message. LOS ANGELES (AP) The family of a novice stock trader who killed himself after mistakenly believing he lost more than 700,000 are suing Robinhood Financial, claiming the popular stock-trading platform’s business practices directly led to their son’s death. Kearns received an e-mail from Robinhood on the evening of the same day and found that it was $ 730,165 in losses, not $ 10,000 as he thought. Alexander Kearns killed himself on June 12.
He thought that the maximum loss he could get from this transaction would be $ 10,000. The family of a 20-year-old who died by suicide after thinking he'd lost 730,000 on Robinhood last year is suing the stock-trading app, accusing it of wrongful death. With this hope, the young investor opened a position on June 11. Robinhood added three million new accounts to its platform in the first quarter of 2020.Kearns started trading options in hopes of making high profits. Robinhood is a commission-free trading app which is gaining popularity among millennial investors. The tweet included a screenshot of the Robinhood app from Kearns' phone, which showed the massive negative balance Robinhood has not shared Kearns' account details due to privacy concerns.Ī tweet by Brewster on Twitter confirms that the company reached out. "All of us at Robinhood are deeply saddened to hear this terrible news and we reached out to share our condolences with the family over the weekend," Robinhood said, as quoted by Forbes. "When he saw that $730,000 number as a negative, he thought that he had blown up his entire future," Bill Brewster, Kearns' cousin-in-law and a research analyst at Sullimar Capital Group told Forbes. Kearns also said he had not enabled the margin investing option on the app. “How was a 20-year-old with no income able to get assigned almost a million dollars worth of leverage?” the note said. In a note found by the family, Kearns wondered how he had been allowed to get such a huge leverage. A 20-year-old customer of retail investment platform Robinhood died by suicide on June 12 after seeing a negative balance of $730,165.Īlexander Kearns, a student at the University of Nebraska in the US, was living with his parents in Naperville, Illinois when he passed away, Forbes reported.
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