A class action lawsuit has been filed against TD Waterhouse, which is said to have temporarily limited the transactions of certain securities following the coordinated attack on certain venture capital firms by Internet users organized on the social network Reddit .
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The recourse request, filed in the Superior Court by two Montreal firms, asks that it be done on behalf of “all persons who have a TD Waterhouse brokerage account and who have been prevented by TD Waterhouse from selling or buy securities ”.
TD had confirmed to have slowed down the exchange of certain titles on Radio-Canada in an article published Thursday. In the same text, Desjardins confirms having done the same thing, explaining the “market volatility”.
For several days, thousands of small investors have taken the financial market by storm by inflating certain specific titles, and especially those of the video game channel GameStop, BlackBerry and AMC. These securities had been bet down by large hedge funds, which expected to make a fortune when the securities fell.
Faced with this unexpected and highly unusual assault, several brokerage firms, namely the popular Robinhood application, whose “mission” is to “democratize finance”, have decided to limit the trading of these securities. This emergency measure has been decried by American politicians, both Republicans and Democrats, in addition to drawing the wrath of thousands of investors who saw it as a manipulation of the “free market”.
At this time, the plaintiffs have not set an amount claimed in the event that TD Waterhouse should be found guilty in this civil litigation.