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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 21-2989-MDL-ALTONAGA/Torres
In re:
JANUARY 2021 SHORT SQUEEZE
TRADING LITIGATION
_________________________________/
APPLICATION OF MAURICE PESSAH ON BEHALF OF PESSAH LAW GROUP, PC
FOR APPOINTMENT TO PLAINTIFFS’ LEADERSHIP COMMITTEE
Pessah Law Group, PC (“PLG”), by and through its founder Maurice D. Pessah, counsel
of record in the matter of Gossett et al. v. Robinhood Financial, LLC et al., No. 1:21-cv-21293-
CMA, hereby respectfully submits this application pursuant to MDL Pretrial Order No. 2 (Dkt.
No. 209) for appointment to such leadership committee (Executive, Steering or Management (each
a “Committee”)) as may be deemed appropriate by this Honorable Court.1
I. BACKGROUND
The United States hosts the largest public capital markets in the world. The strength of
these markets is inextricably linked to the trust its participants have in their fair and transparent
operation. Any activity by key market players which erodes that trust has serious implications for
the new and growing cohort of retail investors who wish to participate on equal terms.
Events giving rise to this litigation have raised valid questions as to whether those
championing market accessibility are doing so in the spirit of transparency and in accordance with
the letter of the law. Robinhood, a key defendant in this MDL, has over thirteen (13) million users,
1 Pretrial Order No. 2 (“Order No. 2”) provides, in relevant part, “if the parties involved fail to reach an agreement
(…) a party seeking to be appointed lead counsel shall submit an application[.]” Counsel acknowledges, after
discussing with Liaison Counsel and other counsel, that there have been varying interpretations of Order No. 2. The
purpose of the instant application is to apprise the Court of PLG’s experience and ongoing contributions to this MDL.
It is not counsel’s intention to contravene the Court’s Order or overburden the Court.
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with a reported median age of 31 years old2 now trading in the capital markets. The impact on the
markets of this largely millennial and demographically diverse cohort is undeniable.
In January of 2021, retail traders, operating predominantly via online brokerages like
Robinhood, invested heavily in the securities of major U.S.-listed corporations such as American
Airlines (AAL), AMC Entertainment Holdings (AMC), Nokia (NOK) and Gamestop (GME) (the
“Affected Securities”). Large Wall Street players, on the other hand, had taken significant short
positions in the Affected Securities. This dichotomy resulted in a scenario known as a “short
squeeze.” On January 28, 2021, Robinhood imposed drastic “buy side” trading restrictions on the
Affected Securities, thereby forcing its clients to choose between the lesser of two evils: (1) sell
their shares, or (2) hold their shares while the value of their portfolios plummeted due to artificial
“position closing only” restrictions. This precipitated a morass of lawsuits across the country,
which, upon motion to the Judicial Panel on Multidistrict Litigation (JPML), became known as the
In re January 2021 Short Squeeze Trading Litigation (the “MDL”). On April 1, 2021, the JPML
transferred the instant MDL to this Honorable Court.
This MDL involves numerous complex issues of law and fact. As of this date, there are
dozens of pleaded common law causes of action, and state and federal statutory claims, including
federal securities claims subject to inclusion in an, or multiple, eventual Master Complaint(s).
More significantly, there are more than thirty (30) discrete defendants and hundreds of thousands
(if not millions) of putative class members. Indeed, as this Court has acknowledged, the intricacies
of this litigation necessitate the establishment of a collegial leadership structure designed to ensure
judicial efficiency and collaboration.
2 Kate Rooney, Fintech App Robinhood Is Driving a Retail Trading Renaissance During the Stock Market’s Wild
Ride, CNBC.com (June 17, 2020, 4:27 PM), https://www.cnbc.com/2020/06/17/robinhood-drives-retail-trading-
renaissance-during-markets-wild-ride.html.
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Notwithstanding the appointment of lead counsel, best practices support the establishment
of a Committee “if the litigation involves numerous complex issues, if there is a substantial amount
of work to be done, or if the plaintiffs have different interests that require separate representation.”
Bolch Judicial Institute, Guidelines And Best Practices For Large and Mass Tort MDLS, Duke
Law School (2nd. Ed. 2018) (hereinafter, “Duke Standards”), p. 33. Accordingly, those involved
in discussions amongst Plaintiffs’ counsel have acknowledged the need for a leadership structure
encompassing either an executive committee or co-chairs. PLG is poised to assist lead counsel
with the effective and efficient management of this litigation in a manner that reduces duplication
of efforts and preserves resources. See, e.g. Manual for Complex Litigation (4th Ed.) (hereinafter,
“MCL 4th”) §10.221, p.25.
II. INTRODUCTION
PLG has been retained by over 4,100 individual plaintiffs. This class of plaintiffs has
participated in PLG’s streamlined digital intake system. This intake process is in part designed to
build a database that will assist in the tabulation of damages, and in the collection of other pertinent
information. Importantly, this information has also revealed the tremendous diversity that exists
among those retail investors affected by the unlawful actions taken by Robinhood and other
brokers on or about January 28, 2021.
PLG seeks to enhance the complexion of the leadership’s diversity in this litigation—a
diversity that ultimately reflects the multifaceted demographic and socio-economic makeup of
plaintiffs. Indeed, PLG is committed to collaborating with the other appointed lead and Committee
counsel “in a manner that fosters and sustains good working relations among fellow counsel and
the Court.” MDL Docket (Dkt. No. 46); see also MCL 4th §10.21, p.23 (“The added demands and
burdens of complex litigation place a premium on attorney professionalism, and the judge should
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encourage counsel to act responsibly.”). If selected, PLG welcomes the opportunity to participate
in the ongoing effort to modernize and enhance the efficiency of this complex MDL.
III. ARGUMENT
A. PLG’s Early Involvement In Class Advocacy
PLG was an early advocate for the putative class of Robinhood users impacted by the
events of January 28, 2021. On January 29, 2021, PLG filed Gossett et al. v. Robinhood Financial,
LLC et al., 2:21-cv-00837 (C.D. Cal.) (the "Gossett Action") against Robinhood Financial LLC,
Robinhood Securities LLC, and Robinhood Markets LLC (collectively, "Robinhood"). Exh. A:
Conformed Copy of the Gossett Action Complaint. The Gossett Action was among the first
lawsuits filed against Robinhood. From the moment Robinhood imposed trading restrictions on its
largely millennial client base, PLG implemented a targeted outreach campaign designed to
facilitate information gathering in a way that would resonate with Robinhood’s user-base.
B. PLG’s Streamlined Intake Methodology
Concurrently with the filing of the Gossett Action, PLG designed and initiated an
extensive, targeted public outreach campaign focused on (i) facilitating access to the justice
system, and (ii) collecting meaningful data from putative class members. This effort focused on
social media and online applications, the very milieu which is so vital to the daily life of the
affected class. PLG allocated significant time and financial resources towards this effort, resources
which it remains committed to allocating in this MDL.
The success of PLG’s undertaking is reflected in the vast number of clients now
represented by the firm (4,180 and counting). The large putative class represented by PLG is
demographically and geographically diverse. PLG’s analysis and organization of the data that
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continues to pour in from the affected class is ongoing. All or some of this information will play a
vital role in establishing the claims germane to this MDL.
PLG has collected information regarding, inter alia, (i) which securities plaintiffs traded
and in what volume; and (ii) in which derivatives of securities (such as options) they traded and in
what volume. Equally as important are the fact patterns that class members have shared with PLG.
These narratives underscore the common experience among plaintiffs who were impacted by
Robinhood’s unlawful actions.
Through this process, PLG is well positioned to assemble a vast repository of data (the
“Data Repository”). Given the complex nature of this MDL, PLG recognizes the need to
implement a process and system designed to efficiently ascertain and organize information within
the Data Repository. PLG continues to refine its Data Repository and is eager to collaborate with
leadership counsel to ensure that the Data Repository is optimized for the benefit of class members.
C. PLG’s Experience, Expertise and Knowledge of Applicable Law
At the outset, PLG wishes to emphasize its commitment to devote the full breadth of its
talent and resources to this MDL. PLG is not currently involved in any other MDL or class action
litigation. Additionally, PLG notes that it does not wish to apply for lead counsel, but rather a
Committee position for which it is more appropriately suited at this time.
PLG is a dynamic and effective team of litigators with experience in class action and
multidistrict litigation as well as mass torts. PLG’s attorneys have contributed to lawsuits of
comparable size and complexity, including the In re National Prescription Opiate Litigation
(MDL No. 2804), In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and
Products Liability Litigation (MDL No. 2672), In re Roundup Products Liability Litigation
(MDL No. 2741), and In re Ford Motor Co. DPS6 Powershift Transmission Product Liability
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(MDL No. 2814). Moreover, PLG has experience and expertise in commercial litigation, including
the prosecution of claims relevant to this MDL. Exh. B: Copies of PLG Attorney Biographies.
1. Maurice D. Pessah
Over the past ten years, Maurice Pessah, PLG’s founder, has maintained and built an active
litigation practice. Mr. Pessah’s practice includes high stakes, complex class actions, as well as
single-party and multi-party commercial disputes. Mr. Pessah is an eight-time California Super
Lawyer Rising Star, a peer-based award reserved only for the top 2% of lawyers under 40 in
Southern California. Mr. Pessah has extensive litigation experience, and has secured substantial
recoveries on behalf of plaintiffs against large corporate adversaries. In 2017, Mr. Pessah was
invited to join a group of prominent plaintiff’s attorneys pursuing claims against Wells Fargo bank
on behalf of a class of aggrieved employees. See Hogan et al. v. Wells Fargo Bank NA, et al., No.
4:16-cv-07360-DMR (ND Cal. 2016)
Mr. Pessah is joined by PLG’s team of Associate Attorneys, Summer E. Benson, Jason H.
Sunshine and Michael Morris-Nussbaum, and PLG’s Of Counsel, Stuart Chelin.
2. Summer E. Benson
Ms. Benson graduated from American University Washington College of Law, where she
was a dean’s fellow for the Program on Information Justice and Intellectual Property. Ms.
Benson’s practice reflects her passion for advocacy and problem solving. Prior to joining PLG,
Ms. Benson was a litigation associate at a large consumer protection law firm, where she worked
on the In re Volkswagen Clean Diesel Litigation (MDL No. 2672), and the In re Ford Motor Co.
DPS6 Powershift Transmission Product Liability Litigation (MDL No. 2814).
//
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3. Jason H. Sunshine
Upon completing his undergraduate studies at Columbia University, Jason Sunshine served
as Special Assistant at the New York State Department of Financial Services, where he
investigated LIBOR manipulation by several large banks. The investigation culminated in a
historic settlement. Mr. Sunshine then went on to graduate from Columbia Law School. Prior to
joining PLG, Jason practiced at a nationwide plaintiffs’ firm, where he litigated products liability
cases and mass torts, such as the In Re National Prescription Opiate Litigation (MDL No. 2804)
and the In Re Roundup Products Liability Litigation (MDL No. 2741).
4. Stuart N. Chelin
Mr. Chelin has decades of experience in commercial litigation, including significant
experience acting against large institutional corporate opponents. He also brings the added benefit
and perspective of behind-the-scenes business experience, having worked early in his career as in-
house counsel for a multi-national corporation.
Mr. Chelin was a top ten graduate (6th overall) from the prestigious Faculty of Law at
McGill University in Montreal, Canada. He graduated with the distinction of Upper Second Class
Honors. Mr. Chelin is a member of the Law Society of Ontario, and is admitted to practice in the
State of California.
D. PLG’s Collaborative, Consistent and Innovative Approach
PLG’s commitment to this litigation has continued unabated since the filing of the Gossett
Action. In an effort to assist all attorneys to prepare applications for leadership to this Court, PLG
created a resource page at www.pessahlawgroup.com/resources which provides links to MCL 4th,
the Duke Standards, the Local Rule of this Court, and other useful information. Exh. C: PLG’s
MDL Resources Page.
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PLG has a demonstrated track-record of participation in all aspects of this MDL, including
prior to consolidation and transfer. For example, PLG submitted a comprehensive brief to the
JPML. Mr. Pessah was one of the relatively few attorneys to present oral argument at the hearing
on March 25, 2021 before the JPML. Prior to submitting its brief, PLG reviewed each of the
operative complaints and created a consolidated spreadsheet identifying all named plaintiffs and
defendants, filing districts, dates and assigned judges. Exh. D: Spreadsheet of Cases Submitted to
JPML. The spreadsheet was included in PLG’s brief for the benefit of the esteemed JPML.
Moreover, Mr. Pessah, joined by other PLG attorneys, has participated in all conferences
among Plaintiffs’ counsel, and maintained an ongoing dialogue with those who are applying for
leadership positions. PLG has held these discussions with a view toward future collaboration with
other plaintiffs’ counsel.
Significantly, PLG has played a critical role in shaping the tranche-based approach that has
been endorsed by all parties. PLG’s early and consistent espousal of a Robinhood-centric tranche
for statutory and common law claims ultimately gained consensus amongst plaintiffs’ counsel. By
the Initial Conference on April 19, 2021, PLG’s vision of the case and the division of claims it
contemplated had gained general consensus. PLG has thus already played a major role in shaping
this MDL.
E. Diversity and Inclusion
PLG is not a "repeat player" in multi-district or class action litigation. PLG’s young slate
of attorneys, some of whom have relevant MDL experience, will enhance problem solving and
promote a new generation of aspiring MDL counsel.
In selecting a selection mechanism and in turn appointing a
leadership team, courts should be mindful of the benefits of diversity
of all types. In particular, the strong repeat player dynamic that has
historically existed reduces fresh outlooks and innovative ideas,
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and increases pressure to go along with the group and conform, all
of which may negatively impact the plaintiffs whose cases are being
pursued in the MDL.
Duke Standards, p. 37 (emphasis added).
As explicitly recognized in the Duke Standards, “the same way that diversity improves
companies’ bottom lines, litigants and the civil justice system benefit from diversity of leadership.”
Duke Standards, p. 45. In addition to the experience and expertise PLG brings to this litigation, its
relatively young and diverse group of attorneys will bring “novel concepts,” creativity and
innovation to the eventual slate of leadership appointed by this Court. See Duke Standards, p. 46
(recognizing the benefits of “new players” in enhancing creativity and innovation in MDL
advocacy).
Appointing PLG to a leadership Committee would empower the next generation of MDL
attorneys, promote diversity in the slate, and advance the policy of avoiding dominance by “repeat
players.”
F. PLG’s Relationship With Other Counsel
As indicated above, through its wide outreach, PLG has already developed relationships
with many of the attorneys representing plaintiffs in this MDL.
PLG is aware of at least five (5) attorneys seeking appointment as lead or co-lead counsel
(excluding the firms handling the securities related tranche). The attorneys, in no particular order,
are as follows: (1) Natalia Salas (The Ferraro Law Firm), (2) Dennis Ellis (Browne George Ross
O'Brien Annaguey & Ellis LLP), (3) Frank Schirripa (Hach Rose Schirripa & Cheverie LLP), (4)
Joseph Saveri (Joseph Saveri Law Firm), and (5) Jeffrey Klafter (Klafter Lesser LLP).
PLG has maintained a productive dialogue with the above counsel, all of whom are
accomplished and qualified in their own right. By way of example, PLG has held ongoing
discussions with Brown George Ross and would support a slate that includes Mr. Ellis in a lead
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counsel position. Additionally, Ms. Salas has initiated outreach to PLG and would also have PLG’s
support for the lead position she is seeking. Messrs. Saveri and Schirripa are seeking to lead the
anti-trust tranche of cases, and PLG would support either choice for said role. PLG further
recognizes that qualified attorneys outside of the aforementioned group may be applying for
leadership positions. With respect to Liaison Counsel, PLG supports the appointment of Rachel
Wagner Furst of Grossman Roth Yaffa Cohen, P.A. Of utmost importance is that plaintiffs are
competently represented, and PLG remains committed to working with any Court-appointed
leadership slate.
IV. CONCLUSION
For the foregoing reasons, Maurice Pessah respectfully requests that the Court appoint him
to such Committee as this Honorable Court deems appropriate.
Dated: April 26, 2021
Respectfully submitted,
PESSAH LAW GROUP, PC
By: /s/ Maurice D. Pessah
Maurice D. Pessah
maurice@pessahgroup.com
Summer E. Benson
sbenson@pessahgroup.com
Jason H. Sunshine
jsunshine@pessahgroup.com
Michael Morris-Nussbaum
mmnussbaum@pessahgroup.com
Stuart N. Chelin (Of Counsel)
stuart@chelinlaw.com
Attorneys for Plaintiffs
Josh Gossett
James LaPlant
Danielle Perreault
Maurice Scarborough
Scott Schiller
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