Media Summary: Ambrose McCall Discusses Robinhood/GameStop Drama and Explores Employer Rights and Limitations When Dealing with Insurrectionists
Hinshaw's Ambrose McCall appeared on the Week in Review show to discuss whether Robinhood was within its rights to restrict GameStop trading. After word got out that hedge funds had shorted GameStop's stock, a Reddit community called Wall Street Bets—which has over 6 million members—bought shares in the fledgling video game retailer in order to beat the hedge funds at their own game. As a result of their buying, GameStop officially earned a seat at the Fortune 500 table.
Some of the individual investors were buying stocks on Robinhood, a commission-free stock trading and investing app; soon after, Robinhood restricted GameStop trading. There was considerable controversy regarding Robinhood's move which, as of Monday, February 1, 2021, has been rolled back to a degree. However, according to McCall, Robinhood was within their legal rights to make the decision because of Section 16 of their Customer Agreement. He also urged Congress to take action quickly, since this social media fueled investing strategy is something the public has never seen before.
On another episode of the Greg & Dan Show, McCall discussed employer rights and limitations when it comes to terminations following the insurrection at the U.S. Capitol on January 6, 2021. Several employees who participated in the insurrection have been terminated, with many claiming their rights were violated. As McCall explained, however, these were extenuating circumstances and a majority of the employers were—and are—within their rights to terminate these employees.
Listen to the full segment on Robinhood and GameStop, originally recorded on January 29, 2021.
Listen to the full segment on employer rights and limitations, originally recorded on January 14, 2021.