Can Robinhood Survive Its Legal Troubles?


Robinhood, the stock-trading app that launched into public discourse after frenzied “meme stock” investments forced the company to freeze trading earlier this year (2021), is facing considerable legal trouble and punitive fines following charges of spreading false and misleading information. The company’s struggles come at an odd time; after a disappointing IPO, Robinhood seems to be benefiting from the same kind of trading mania that drove meme stocks like AMC and dogecoin through the roof. But growing concern over the company’s reliance on unpredictable (and unregulated) cryptocurrency trading as its primary revenue driver has contributed to skepticism over Robinhood’s future, particularly as reports on cryptocurrency’s deleterious environmental impact come to light.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles