Robinhood, a popular trading platform, is nearing a settlement with investors who sued the company for halting the trading of certain meme stocks in 2021. The settlement is expected to be finalized within the next two weeks, according to a recent filing in a Miami federal court.

The lawsuit, led by Plaintiff Blue Laine-Beveridge, accused Robinhood of manipulating market prices and causing significant financial losses by restricting the stocks its users could buy. The affected stocks included GameStop, AMC, Bed Bath & Beyond, BlackBerry, Nokia, trivago, Koss, Express Inc., and Tootsie Roll. The investors claimed that Robinhood's actions violated securities law and led to tens of billions of dollars in losses.

The settlement comes after a federal judge denied the investors' request to file a new motion for class certification in April. This is part of a broader legal action in multiple U.S. jurisdictions regarding Robinhood's handling of meme stocks. Meme stocks, such as GameStop and AMC, are named because retail investors often trade them based on social media hype.

GameStop's stock surged dramatically in January 2021 due to a "short squeeze," causing significant losses for hedge funds and short sellers while some retail traders made substantial gains. The surge was largely credited to Keith Gill, known as "Roaring Kitty," who recently returned to social media platform X after a nearly three-year hiatus. His return and cryptic posts excited traders, pushing GME's stock to close at $48.75 on May 14, its highest since late 2021. However, GameStop's stock has since dropped significantly, closing down nearly 11% on May 29 at $21.24, with an additional 2% decline in after-hours trading to $20.78.