Supreme Court to Hear Robinhood IPO Lawsuit Appeal

The Supreme Court of the United States agreed Friday to hear an appeal from Robinhood Markets, Inc. seeking to block a class-action lawsuit concerning the company's 2021 initial public offering. Investors allege that Robinhood and its underwriters, including Goldman Sachs and J.P. Morgan Securities, omitted material interim financial data from the second quarter of 2021 in the IPO registration statement. The plaintiffs claim the stock price declined once those financial results were eventually reported.

The legal dispute follows a series of conflicting rulings. A San Francisco federal court judge initially dismissed the lawsuit, but the U.S. 9th Circuit Court of Appeals later revived the case. Both the Securities and Exchange Commission and the Trump administration urged the Supreme Court to take up the matter. Robinhood stated it is pleased the court agreed to hear the case and looks forward to presenting its argument.