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The family of a 20-year-old student who committed suicide after believing he had racked up big business losses on Robinhood Markets Inc. have filed a lawsuit against the company, claiming that his “reckless conduct directly and immediately caused the death of one of its victims. “
Alex Kearns’ father, mother and sister, a Robinhood user and an undergraduate student at the University of Nebraska-Lincoln, said in a complaint filed in California state court on Monday that Robinhood contributed to his death by “misleading communications” about his investments and “almost non-existent” customer service. They are asking for unspecified damages.
“We were devastated by the death of Alex Kearns,” a Robinhood spokesperson said in an email. “We remain committed to making Robinhood a place to learn and invest responsibly.”
Robinhood has been one of the biggest beneficiaries of the retail boom during pandemic lockdowns, which reached new heights last month with the mania surrounding GameStop Corp. and other actions promoted by Reddit’s WallStreetBets forum. The company racked up around 20 million users at the end of last year, and executives told investors Robinhood was planning an initial public offering in the first half of 2021, the Wall Street Journal previously reported.
But in the midst of Robinhood’s growth, the company has sometimes failed to prioritize things like customer service, communications, and risk management.
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