Robinhood has been hit with a wrongful demise lawsuit by an Illinois couple whose 20-year-old son took his personal life final yr after struggling what he believed to be a large loss on the stock-trading app.
In keeping with courtroom paperwork filed Monday, Alex Kearns died by suicide final June shortly after Robinhood allegedly led him to consider he owed $730,000 after making some inventory trades.
Dan and Dorothy Kearns of Naperville, Illinois, accused Robinhood of utilizing “aggressive tactics and strategy to lure inexperienced and unsophisticated investors” like their son, a College of Nebraska scholar, “to take big risks with the lure of tantalizing profits.” They’re looking for unspecified damages.
In keeping with the lawsuit, Alex Kearns tried to succeed in Robinhood’s customer support on a number of events after receiving an e-mail asking for a minimal deposit of greater than $170,000 on what he thought was a $730,000 loss. In actuality, the perceived loss was coated by different choices in his account, in keeping with the lawsuit.
“Though Alex’s panic and confusion were clearly caused by Robinhood’s misleading communications, Robinhood was impossible to reach at the most critical moment to repair the damage it created,” reads the criticism, which might be present in full right here. The shortage of communication “resulted in a highly distressed mental condition” that ended with Alex taking his personal life.
“I lost the love of my life. I miss him more than anything,” Dorothy Kearns instructed “CBS This Morning” in a Monday interview. “I can’t tell you how incredibly painful it is. It’s the kind of pain that I don’t think should be humanly possible for a parent to overcome.”
Watch Dan and Dorothy Kearns’ “CBS This Morning” interview beneath.
Added Dan Kearns: “[Alex] thought he blew up his life. He thought he screwed up beyond repair.”
The lawsuit follows weeks of scrutiny surrounding Robinhood’s easy-to-use, commission-free buying and selling within the wake of January’s Reddit investor-fueled GameStop debacle.
In an e-mail despatched to HuffPost on Tuesday, a Robinhood spokesperson mentioned the corporate was “devastated” by Alex Kearns’ demise, and had since “made improvements to our options offering” in consequence.
“In early December, we also added live voice support for customers with an open options position or recent expiration, and plan to expand to other use cases,” the spokesperson added. “We also changed our protocol to escalate customers who email us for help with exercise and early assignment. We remain committed to making Robinhood a place to learn and invest responsibly.”
If you happen to or somebody you recognize wants assist, name 1-800-273-8255 for the Nationwide Suicide Prevention Lifeline. You too can textual content HOME to 741-741 totally free, 24-hour help from the Disaster Textual content Line. Outdoors of the U.S., please go to the Worldwide Affiliation for Suicide Prevention for a database of sources.
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