(CNN Business) – Robinhood has been charged with manslaughter by a university student for 20 years who committed suicide and was charged with having a negative balance of US $ 730,000 on his operations and creating an error that was the amount of money he owed.
Alexander Kearns’ father and son-in-law accuse Robinhood of attracting inverted investorists like him for assuming large risks in sophisticated financial instruments, such as participant options operations, without burning customer and customer support inversion.
«Robinhood built on the platform of trade “It’s much like a video game to attract young users and minimize the risk of real world risk,” said the petitioner, who presented the moon in California to Kearns, Dan and Dorothy, and her husband Sydney.
In addition to unjustified death, the denunciation presented by the Illinois family accuses Robinhood of causing emotional distress through negligence and unfair commercial practices. The compensation that can be determined in a posterior box.
“Tragically, Robinhood’s communications were completely engulfed because, in reality, Alex did not make the money,” the request said.
Robinhood’s response
The tragedy illustrates the potential dangers of the eye of the eye trade Free trial in large part by Robinhood, which has carried out an explosive crime during the pandemic.
These giants were recently magnificently added to the gameStop’s eye and eye, catapulted by a Reddit operator. Robinhood generates indignation my step to temporarily suspend GameStop purchases, a controversial step that led Congress to program audiences.
In a statement, Robinhood explained that it has implemented a series of bests in its options offer, which includes branding to help customers, updates on how to show the purchasing power and live support for the customers’ positions.
“We are devastated by the death of Alex Kearns,” said Robinhood. “We will compromise with making Robinhood a place to learn and reverse in a responsible manner,” he said.
‘Estaba en pánico total’
Kearns, who started using Robinhood when he was in high school last year, pleaded guilty to suicide in June when he managed to carry out a differentiation operation on options that contained a “Alex does not intend” risk, according to the request. The Robinhood account reflects a negative effective balance of US $ 730,000, much more than ten dollars, according to the request.
«Estaba in total panic. His panic and desperate desperation for him could not be communicated during various hours with Nadie in Robinhood “, said the request. Agree that intention in repeated occasions contact with representatives of the company and not the log.
In summary, Kearns did not disclose that this huge negative balance was being breached with the acquisition and liquidation of the options it held, following the request.
“Robinhood has never been molested by explaining to Alex that he did not respond to any of his desperate requests for help,” the petition said.
The family directly blamed Robinhood on Kearns’ panic.
“It resulted in a mental state of great anguish for Alex, an uncontrollable impulse to commit suicide as the only option that could happen,” he said.
Cambios and Robinhood
Before acknowledging life, Kearns gave a note indicating his confusion.
“How can a young man of 20 years sincerely agree that he should appoint an appraisal for the value of US $ 1 million?” The document shows that these are the last words written that are known.
After Kearns’ death, Robinhood’s co-founders wrote that they were “personally devastated by this tragedy” and promised to achieve better in their application.
Robinhood said this week that its exchanges will include new financial criteria and a review of experience requirements for new customers that can be negotiated with advanced options strategies, and that plan to expand to other cases. Robinhood has also changed its system to accelerate the support efforts sent by e-mail to some of the options operators.