The GameStop Woes Keep Plaguing Melvin Capital

Melvin Capital is facing a surge of lawsuits from accusers who claim that the hedge fund twisted up in the GameStop disaster has conspired to limit trading for trade investors, causing them to lose cash.

The investment firm created by Gabe Plotkin revealed nine lawful complaints in its most latest ADV filing, which social media depositors on Reddit delightedly discussed at length this week. The complaints were first stated by Official Investor.

The suits blame Melvin Capital plus other market front-runners of colluding to limit retail trading in January, while a freeze on distinct accounts tradeoff shares of GameStop, AMC, and additional so-called “meme” stocks had trade investors and regulators crying foul play.

Melvin Capital – An overview

Melvin Capital, which supposedly lost 50% in its small sales on GameStop, has since had its ties carefully inspected by the public. Ken Griffin’s Citadel has stakes in Melvin Capital. Citadel Securities, his distinct market making trade, directs payment for order stream in Robinhood, the noticeable online brokerage that has been chastised for its part curbing trading on its platform.

Melvin Capital

The hedge fund has said in its filings that the conspiracy entitlements are “without merit.”

During a supervisory hearing last month, Plotkin said Melvin Capital played “completely no role” in the verdicts to curb trading through online platforms for exampleRobinhood, saying the hedge fund had shut out its positions in GameStop beforehand the limits were implemented.

The firm also received a $2 billion share from Citadel that Gabe Plotkin said was not a bailout.

Melvin Capital said its lawful bills will not affect the properties the firm has underneath management, which reached a stated $24.5 billion at the close of last year.

In December, the firm selected attorney Robert Rasamny as its principal compliance officer and lawful head. He will handle the supervisory swirl the hedge fund faces.

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