robinhood by 20yearold who committed suicide

Robinhood has recently came under fire when it stopped people from buying shares of GameStop and other stocks that exploded in a market frenzy last month. “We designed Robinhood to be mobile-first and intuitive, with the goal of making investing feel more familiar and less daunting for an entire generation of people previously cut out of the financial system,” the statement continued. Our mission is to democratize finance for all,” a spokesperson for the app told CBS. “We remain committed to making Robinhood a place to learn and invest responsibly. They also now have a call-back option from a live agent and a mechanism in place to escalate emails like the one that Kearns sent, the outlet reported. 02:56 - Source: CNN Business Watch video of the extra-rugged off-road 2024 Toyota Tacoma Trailhunter Parents of young trader who died by suicide: Robinhood is to blame Tom Brady, a Bahamas. Robinhood told CBS of the changes they had made since Kearns’ devastating death, including adding instructions and educational materials for options trading and adding screening for experience for riskier trades. The complaint states that 20-year-old Alex Kearns was led to believe he had fallen 730,000 in debt when he took his life in June. The Kearns said their son just wanted answers and help, the report said. The family of a 20-year-old man who committed suicide last year have sued trading app Robinhood over his death. 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. “That could panic just about anybody.”Īnother lawyer for the family, Ethan Brown, told CBS that “they provide no mechanism through a telephone call, through live email service, to get live answers to questions.” Last June, 20-year-old Alex Kearns died by suicide, blaming stock trading app Robinhood for his death. “Because they make it look like you owe $730,000 when you really don’t owe anything,” Blakeman told the outlet. It says that Robinhood then showed him a negative balance of almost $730,000 (£531,330), demanding more than $170,000 within a few days.Meet the Redditor who made millions off GameStop and started a market frenzy Last week British MPs called for regulators to look into Robinhood and similar low-friction trading apps, saying they could easily 'ruin people's lives and leave them penniless'.Īccording to the lawsuit, Mr Kearns was approved to take out options, which carry higher risk than buying shares, despite his financial inexperience. But it has also attracted controversy and a lawsuit from the US state of Massachusetts, which claims that it uses video-game like features to encourage users to trade. Robinhood has soared to more than 13 million users thanks to its easy trading interface, and says that it is on a mission to 'democratise finance'.

Mr Kearns, a student at the University of Nebraska who had been investing his savings using the app while living with his parents in Illinois due to the pandemic, took his life last June after having his Robinhood account restricted. The parents of Alex Kearns, a 20-year-old Robinhood user who died by suicide after mistakenly believing that he had lost a fortune, plan to sue the trading app over his death.ĭan and Dorothy Kearns told CBS News that they will file a lawsuit accusing Robinhood of wrongful death, negligent infliction of emotional distress and unfair business practices.

Robinhood by 20yearold who committed suicide