Today I Want to talk about how Robin Hood is finally being sued for turning off the buy button I Want to start by outlining the class action lawsuit against Robin Hood I Want to talk about previous attempts to sue them and I also want to talk about why this time is very, very different. So stay tuned and let's make some money. And now that I've straight in with the compilation so a 741 trade tweet that he said Klaff the Lesser LLP files a class action lawsuit against Robin Hood Trading Platform representing investors who held call options on the platform as of the close on January 27, 2021 to purchase American Airlines AMC Blackberry Bed Bath and Beyond GameStop and Nokia. It says the lawsuit alleges that Robin Hood sold such options from January 28, 2021 through to February 19, 2021 and prohibited exercise of the underlying stocks while the value of those affected options dropped dramatically and remained depressed, leading to significant losses from the alleged manipulation.

Now, we've also got the Newswire article. The Newswire release that dives a little bit further in depth into this class action lawsuit. It says that Klaff the Lesser LLP a highly experienced class action law firm announces today that it's filed a class action lawsuit in the United States District Court for the Central District of California and that lawsuit is seeking to represent investors who held call options on the Robin Hood trading platform as of the close on January 27th. So it says the lawsuit alleges that on January 28th, Robinhood Markets, Incorporated and two of its wholly owned subsidiaries Robin Hood Financial and Robin Hood Securities prohibited purchasing the stocks underlying the affected options on its platform and also prohibited the exercise of those affected options and thereby only allowed the closing out of such positions.

And if further alleges that during the period from January 29th through to February 4th, Robin Hood imposed significant limits on any such purchases and continue to prevent the exercise of those affected options on its trading platform. So you may remember a few weeks ago, many trading platforms allowed users that held for options in Silicon Valley Bank to exercise those puts. They didn't allow them to sell the perks. they didn't allow them to buy more puts, but they did allow them to exercise Now back in January of 2021 Robin Hood did not allow those customers to exercise those calls or even those puts.

They did allow them to close them out, but they didn't allow the exercise to purchase more shares. And it's alleged that by virtue of these purchase and exercise prohibitations and limitations Robin Hood engaged in Market manipulation. Now you may remember that back in late 2021, both Robin Hood and Citadel were sued for a legal Market manipulation. Now, this case did end up being thrown out by the judge Cecilia Ortonega.

But as Bruce Wayne tweeted, he said, we didn't forget about you judge Cecilia Altanega who dismissed The Citadel Robin Hood case without prejudice. But obviously it turned out back then that her spouse aka the spouse of Cecilia or Tanega worked as a partner at one of the defendants Law Firm. So actually Cecilia Altenega had a husband that was a partner at the law firm that was actually defending Citadel. Therefore, there was AKA conflict of interest, but unfortunately this was only brought up after the case had already been dismissed.

Now this time around, there's a few crucial differences and the first one is that this time cloth, the Lesser is the law firm leading this loss and it says here the class. the Lesser LLP has extensive experience in Prosecuting class actions and the founding partners of the firm who have extensive class action experience have recovered over a billion dollars for the benefit of classes in numerous cases. So this time we have a very solid Law Firm taking our case and backing our corner and backing those users of Robin Hood who did lose out. And also hopefully this time around we have a different judge that is not Cecilia Ortonega that does not have a conflict of interest.

It will be very interesting and very exciting to see if this case does make its way to court and does go through the discovery stage. and I think depending on how this case goes against Robin Hood it then builds a bit of a precedence and also a backstory for further cases against Citadel. So for this case, it's obviously about Robin Hood turning off the buy button obviously of this case against Robin Hood is successful. It leaves way and opens the doors to a broader case on illegal Market manipulation against other firms like Citadel I Am glad that Robin Hood is finally being re-sooed for turning off the buy button and I do hope this case goes well and I do hope those users of Robin Hood receive some kind of reimbursement.

And as I said, I do also hope it says it's a President to open the doors to go after other firms like Citadel Guys, if you haven't already, be sure to join me over on MooMoo Using the link in the description below, you can currently receive up to a whopping 15 of free stocks entirely commission free trading Free level 2, Market data and most importantly of all, Boomu is very easy to use. They've got tons of technical indicators and advanced charting tools and with movie you can currently get entirely free 24 7 customer support and you can also trade around the clock with those full extended trading hours. Now something I found very interesting which actually ties into my video from yesterday was Adam Aaron's tweet that he made this morning Adam And we're saying with more and more electric powered and hybrid vehicles being sold every day in the US and people often parking their cars at AMC theaters for about three hours, do you think we should install for pay electric charging stations at our theaters where we control the parking? Basically Adam arrow is suggesting should we work with electrically powered vehicle manufacturers such as Tesla to install electrical charging points as suspended POS Added he said, why does it feel like Adam Aaron and Elon Musk or communicating indirectly on here on Twitter This is actually a tweet from Adam Marion that I didn't actually expect but any kind of partnership with Elon Musk is always going to be positive and obviously I've had a marine name see, do install electric big charge points in there AMC Theater car Parks it's just another Revenue stream free see now I Also want to talk about another broker that is definitely lending out your shares without your permission unless you've turned off that share lending option. obviously.

the other day I spoke about wealth. simple but today I'm now speaking about public as AMC for all tweeted they said confirmed public does indeed lend your shares out by default, you must message them and tell them to opt out even if you've opted out of share. ending on public in the past, it's like your Shares are now being lent out unless you re-upped out through the direct message system and he said, let's remove another source of shares for the hedge funds to short with and drive that cost to borrow even higher. This is actually something that's not not only beneficial for you because it means that your AMC shares won't be lent out, but it's also damaging for these short hedge funds because it means the cost to Borrow rate will Skyrocket even more as more and more platforms have to recall their shares out of that share lending pool because users are turning off share lending.

That means it's going to be even more difficult for these hedge funds to locate shares they're sure and the cost to borrow rate continues to go up. So as I've said, if you haven't already, please do, be sure to turn off your share lending or just change platforms altogether to another trading platform like MooMoo And as you can see, this seems to already be having some effect as the AMC cost of our rate has just hit a new all-time high of 979 percent as average. Obviously all platforms seem to have different share lending rates between Weeble between or text and between other platforms on top of that. But what this platform is showing is a new all-time high.

And again, you can see over the last year just how this cost to borrow rate has absolutely skyrocketed. It was down here between zero and one or two percent until it skyrocketed right now up to 979. Obviously I Think the more we can force up this cost to borrow FB the closer we get to the squeeze and you may be saying okay Tom that's all well and good. That's awesome.

Great trust me bro information. But obviously if we can get this short borrow fee up to say forty thousand percent I think it would practically instantly liquidate these hedge funds. Obviously, it cost a borrow fee of over a thousand percent is already Sky High But if we can drive this borrow fee higher to say ten thousand, Twenty thousand, thirty thousand, or forty thousand percent, these shorts have no option but to close. Now it seems another giant hedge fund SoftBank seems to be closing out of positions to shore up their collateral for their underwater margin positions.

You can see that tweeted saying that SoftBank moves to sell down most of its Alibaba steak as they held around around nine percent of the company. And as secretary's tweeted, he said, masteries, dump his undervalued bags to shore up collateral for his underwater margin positions Now I Don't know if SoftBank is shorting AMC directly or even indirectly for that matter, but this is exactly what I've been talking about that many other hedge funds are doing. They're closing out of their smaller short positions to shore up collateral for their underwater larger short positions. Like those AMC shorts, they're closing out of their shorts in companies like Coinbase a firm Tesla Nvidia and many other companies so they can shrop their other underwater short positions on companies like AMC and GameStop and finally, zero.

Hey, just switching. The Fomc minutes show that staff expect a mild recession, but all members of the FED back continuous quantitative tightening and another 25 basis point hike. So it seems that actually the FED is indeed expecting at least a moderate session to happen over the next few months of this year. Obviously, I do expect the FED are underestimating the true damage that's about to happen and that it won't be just a mile or a session.

it'll be a very severe recession. But it does go to show even the FED expects the market to fall further, especially if we do enter this at least very mild recession. And obviously if the market Falls Further, those underwater short positions and those underwater long positions continue to get even worse and these hedge funds get closer and closer to that marching cool. But guys, be sure to let me know what you think down in the comments below.

And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I upload a new video. Cheers!.