On June 30, 2021, FINRA ordered an approximately $70 Million financial penalty against Robinhood Financial LLC, the highest such penalty ever levied by the regulatory organization.[1] Through its investigation of the firm, FINRA charged Robinhood with numerous violations which had resulted in significant losses to their customers. While Robinhood neither…
In light of the ever-expanding role of digital technology in daily life, along with a string of recent high-profile cyberattacks, it is fitting that the Securities and Exchange Commission (“SEC”) has included cybersecurity risks on their 2021 regulatory agenda. The SEC last provided cybersecurity guidance in 2018, though critics argue…
The Supreme Court of the United States dealt a blow – at least for now – to plaintiff shareholders as part of its long-awaited June 21, 2021 decision in Goldman Sachs Group, Inc. v. Arkansas Teacher Retirement System. The Plaintiffs, all Goldman shareholders, filed this securities fraud class-action suit against…
Regulation of cryptocurrency remains broadly uncharted in the United States, even as its popularity has exploded. The uncertainty shrouding crypto regulation stems largely from complexities within the blockchain on which it is based and from difficulties with its classification – is it a commodity? Is it a security? Is it…
In light of the recent market volatility brought on by social media and the meme stock frenzy, the Securities and Exchange Commission (SEC) is beginning to investigate whether rule changes are in order for the market structures which foster these situations. During a speech on June 9th, 2021, newly appointed…
With the recent rise of meme stocks– both in the market and in the media – there has been plenty of talk about short squeezes and their impact. While short squeezes themselves are not a new concept, the unique market characteristics of 2021 have ushered them into the mainstream. Given…
FINRA Dispute Resolution arbitration offers a fair and expedited dispute resolution pathway for investors looking to resolve a dispute with their broker or securities firm. The arbitration process works as an alternative to traditional litigation and operates completely independent of the court system. As a result, this process often allows…
Margin investing offers the opportunity to super-charge investments, but it also holds quite a bit of risk. Recent market volatility has shed a light on some of these risks, particularly for users of app-based platforms like Robinhood. Let’s consider an example of margin investing with Robinhood. An investor deposits $5,000…
In the span of the last two months, a digital piece of art sold for nearly $70 million, Jack Dorsey, CEO of Twitter, sold his first tweet for $2.8 million, and a digital Lebron James basketball card went for $208,000. What do these three massive sales have in common? Each…
Filling a Chapter 7 Bankruptcy petition can be complex, but the attorneys at Savage Villoch Law, PLLC are equipped to ease the burden and guide you through the process with care. As we’ve previously covered in our chapter 7 bankruptcy blog series, determining chapter 7 eligibility can be complicated in…