Robinhood Sued by
Parents of 20-Year-Old Trader
Who Died by Suicide.
Robinhood has been hit
with a wrongful death
lawsuit by the family of
20-year-old Alex Kearns. .
His parents claim that Alex died by
suicide last June after Robinhood caused him to
incorrectly believe he was far in debt.
The stock trading application reportedly
displayed an outrageous negative balance of $730,000
in his account the day before his death. .
Alex tried to contact Robinhood, but received
only a generic email response. .
In his suicide note, Alex questioned how that
could have happen because he “only thought [he]
was risking the money [he] actually owned.”.
In addition to wrongful death, the family’s lawsuit also accused Robinhood of unfair business practices.
A company spokesperson has since released a
statement to TMZ, saying they were “devastated” by
Alex’s death and committed to making “improvements.”.
We’ve made improvements to our options offering.
These include adding the ability to exercise
contracts in the app, guidance to help customers
through early assignment, updates to how we
display buying power, .., Robinhood, via TMZ.
... more educational materials
on options, and new financial criteria and revised
experience requirements for new customers
seeking to trade Level 3 options, Robinhood, via TMZ.
Robinhood also reportedly added live voice support and
changed protocols to allow faster access to help