Robinhood Markets Inc. was sued by the parents of a 20-year-old trader who killed himself last year after he incorrectly believed he had lost $730,000 on an options trade. The parents of Alex Kearns filed a wrongful death lawsuit Monday in state court i Santa Clara County, California, claiming the no-fee brokerage preys on inexperienced and unsophisticated investors like their son. Alex Kearns had placed an option spread trade whereby he simultaneously acquired and sold put options in the same security, according to the complaint. “We were devastated by Alex Kearns’ death," Robinhood said in a statement. The case is Kearns v. Robinhood Financial LLC, 21CV375872, California Superior Court, Santa Clara County (San Jose).

Source: Mint February 09, 2021 01:41 UTC