![]() Kearns was deeply troubling to me and to the entire company. Family set to sue Robinhood over son's suicide Twenty-year-old Alex Kearns took his own life last June mistakenly believing he'd lost nearly 750,000 in a risky bet on Robinhood, the. Robinhood CEO Vlad Tenev apologized to Kearns' family earlier this year at a Congressional hearing over the company's role in GameStop's January short squeeze. Robinhood's S-1 says the lawsuit "asserted claims for wrongful death, negligent infliction of emotional distress and unfair business practices under a California statute, and sought damages and other relief." Kearns' parents reportedly said the app targets young people and encourages them to take part in risky trading. Kearns' parents filed the wrongful death suit in February. "We are committed to continuously improving our platform and are reviewing our options offering to determine if any changes may be appropriate." "All of us at Robinhood are deeply saddened to hear this terrible news and we reached out to share our condolences with the family over the weekend," Robinhood said at the time. Family says 20-year-old died by suicide after seeing a -730,000 Robinhood balance 01:49 - Source: CNNBusiness New York CNN Business The family of a 20-year-old student says he died. ![]() The company issued a statement addressing Kearns' death last June. Robinhood replied with an automated message saying the company would get back to him but their response could be delayed, CBS reports. Could someone please look into this?" he wrote. "I was incorrectly assigned more money than I should have, my bought puts should have covered the puts I sold. It likely came from complex options trades, which can leave temporary balances while they settle over multiple days.īefore his death, Kearns emailed Robinhood asking for help after seeing his balance, according to CBS News. However, the balance did not reflect the portfolio's value or debt owed. Twenty-year-old Alex Kearns killed himself last June after seeing a negative balance of $730,000 in his account on the stock-trading app. The company said in its public filing for an IPO on Thursday that the lawsuit was "dismissed with prejudice following a settlement between the parties." The terms of the settlement were not disclosed in the S-1 filing. Robinhood has settled a wrongful death lawsuit over the suicide of a college student who killed himself thinking he lost $730,000 on the app. Close DONATE TO SUPPORT LOCAL NEWS Search for: Search. See more stories on Insider's business page. The family of a Nebraska college student who died by suicide as a result of his allegedly mistaken belief that he had incurred a massive financial loss. ![]() Robinhood disclosed the settlement in its S-1 filing on Thursday. Robinhood has settled a wrongful death lawsuit over the suicide of a 20-year-old trader last June.Īlex Kearns killed himself after thinking he lost $730,000 on the stock-trading app.
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