The founder and former CEO of Nikola Corporation, a Tesla competitor, was charged in a securities fraud scheme in the Southern District of New York on Thursday. Trevor Milton is accused of defrauding and misleading investors about the development of his company’s products and technologies in order to drive investor demand.
Robinhood, the online brokerage firm known for its stock trading app, now faces over 30 lawsuits in 10 states related to the brokerage firm's GameStop stock freeze last week. Members of the /r/WallStreetBets subreddit helped propel the stock values of multiple "meme stocks," including AMC, Bed Bath & Beyond, BlackBerry, GameStop, and Nokia, garnering massive media attention. Amidst the unprecedented surge, Robinhood abruptly froze trading on several of these stocks in a "risk-management decision." A number of the lawsuits filed against Robinhood allege market manipulation.
On Monday, June 22, 2020, the United States Supreme Court issued a ruling in Liu v. Securities and Exchange Commission, 591 U.S. ___ (2020). In an 8-1 decision, the Supreme Court held that, in civil enforcement cases brought by the Securities and Exchange Commission, "[a] disgorgement award that does not exceed a wrongdoer's net profits and is awarded for victims is equitable relief permissible under [15 U.S.C.] §78u(d)(5)."
A Zoom shareholder has filed a class action lawsuit against the online videoconferencing company in the US District Court for the Northern District of California. The lawsuit claims that Zoom failed to disclose its lack of end-to-end encryption, and overstated its privacy protections.