U.S. Supreme Court to hear lawsuit tied to Robinhood's 2021 IPO

Nov. 14 (Reuters) — The U.S. Supreme Court has agreed to hear an appeal by Robinhood Markets, which is seeking to dismiss a class-action lawsuit brought by investors over its 2021 initial public offering (IPO). Investors allege that Robinhood's IPO filings failed to adequately disclose the negative impact on its finances and growth prospects before the meme-stock and crypto trading booms faded, as well as declines in key metrics, causing the stock price to fall sharply after listing.

Previously, a San Francisco federal court had dismissed the lawsuit, but the Ninth Circuit Court of Appeals overturned that ruling in 2025 and revived parts of the case. The Trump administration backed the Supreme Court's decision to take up the case. The Supreme Court is expected to rule by the end of June next year.