Who's Liable After GameStop: Litigators' Take
In early 2021, shares of GameStop (GME) spiked, jumping nearly 1000% amid weeks of volatile trading. In the aftermath, several players, including Robinhood, Redditors, and market makers like Citadel face increased risk of liability and regulatory scrutiny for their roles in the GameStop saga. Kenneth Breen and Phara Guberman, partners at Paul Hastings, explain how the events unfolded and break down the legal issues involved, including market manipulation, breach of contract, and potential FINRA violations. They discuss the standards required to show pump and dump schemes and case law that may provide color on how the events should be evaluated.
Watch Who's Liable After GameStop: A Law Professor's Take.
GameStop Stock Trading Poses 'Manipulation' Challenge for Regulators (Kenneth Breen, Phara Guberman, and Rita Fishman on Bloomgberg Law, Jan. 29, 2021)
