US family sue Robinhood (trading app) over son's suicide

[TaylorSwift 162,286]

The parents of a man who killed himself last year have filed a lawsuit against trading app Robinhood over his death.
Dan and Dorothy Kearns say their son was unable to get help or support from customer services.

The parents of Alex say he began using Robinhood [the app, which allows anyone to buy and trade stocks] just before he graduated high school and they did not know the app had also approved him to buy and sell options (a risky financial instrument) despite a lack of financial experience.

Their son realised on 11 June 2020 that his account had been restricted by Robinhood amid what appeared to be a negative balance of more than $700,000 on his account.
The student received an automated email asking him to take "immediate action" to pay more than $170,000 within days.
Alex made three attempts to contact Robinhood customer service asking for support and help understanding the figures on his account, but only received stock response messages saying they would get back to him.

His parents were told by police later that day, on 12 June, that their son had died. The complaint alleges that Alex misunderstood the Robinhood financial statement and was protecting his family from the financial obligation.

His parents say an email from Robinhood, received the day after his death, clarified that trading restrictions had been lifted and the trade resolved.

The lawsuit, filed in California state court, said the loss had been covered by other options in his account and accuses Robinhood's "misleading communications" of leading to "panic and confusion".


source
source

[Chromatislaps 34,854]

poor guy, they should have helped him file for bankruptcy, usually there are programs for that so you can bounce back (at least here in Europe). The lack of support of Robinhood is appalling, this might not end well for that company

[TSUNAMI 21,297]

I hope they win. 

 

RIP. 

[Guest]

Why didnt he tell his family about it? Suicide is never the answer

[bionic 50,111]

10 minutes ago, KanyeWest said:

Why didnt he tell his family about it? Suicide is never the answer

From the article it sounds like he (incorrectly) thought it would impact his parents' finances. Sounds like the young guy had underlying mental health issues and Robinhood refused to support him when his investments made a loss. 

 

And in any circumstance, a lot of people find it difficult to talk about money problems.

[weed 78,874]

Can someone explain? The 700k was real or a mistake? And then demanding $170k?

[TSUNAMI 21,297]

6 minutes ago, bionic said:

And in any circumstance, a lot of people find it difficult to talk about money problems.

When I was growing up poor I was often overlooked and rejected because we were poor. The money is  a global measurement for success, unfortunately. 

[bionic 50,111]

6 minutes ago, TSUNAMI said:

When I was growing up poor I was often overlooked and rejected because we were poor. The money is  a global measurement for success, unfortunately. 

Absolutely right. I come from a v working class family and although I'm really good with money and all of my family know this, I still feel pretty ashamed and embarrassed when I say I can't afford this or that. The reality: neither can they, but they care less about being trapped in a cycle of debt

[CommonWhiteGirl 1,039]

38 minutes ago, bionic said:

From the article it sounds like he (incorrectly) thought it would impact his parents' finances. Sounds like the young guy had underlying mental health issues and Robinhood refused to support him when his investments made a loss. 

 

And in any circumstance, a lot of people find it difficult to talk about money problems.

Especially in the US. Culturally, we're taught from a young age to never discuss personal finances with people and it's seen as a taboo topic. I've asked family members about their financial situations before and I've been chewed out over it. In a lot of cases even parents get offended if their own children ask how much money they make.

He probably assumed that he was alone in figuring it out by himself because, unfortunately, that's how personal finances work in the US. You just have to figure it out for yourself and that's why so many people are in crippling debt.