Supreme Court to hear Robinhood appeal on IPO disclosure lawsuit
The U.S. Supreme Court has agreed to review Robinhood's request to overturn a Ninth Circuit ruling that revived a class‑action suit over its July 2021 IPO. The Court will focus solely on whether Section 11(a) liability can arise from omitted interim financial information, without judging the materiality of the omission. Robinhood argues the lawsuit, which also names Goldman Sachs and J.P. Morgan Securities, should be blocked. Plaintiffs, led by Vinod Sodha and his daughter Amee Sodha, claim the company failed to disclose how reduced trading volumes would affect investors.
Key facts
- A San Francisco district court dismissed the case in 2024 before the Ninth Circuit revived it in 2025.
- Robinhood is headquartered in Menlo Park, California.
- The lawsuit was originally filed in 2021 under the Securities Act of 1933.
Summarised with AI from 2 sources · Updated 05:11Read our AI policy
Why it matters
The decision could reshape liability for omitted interim data in IPO filings.
What changed
The Economic Times joined as a source
First published from CNBC