Declaration of Laurence M. Rosen in Support of the Motion for Class Certification — In re January 2021 Short Squeeze Trading Litigation (Dkt. 559-2, S.D. Fla.)

Summary

A Declaration of Laurence M. Rosen in Support of the Motion for Class Certification (Document 559-2) in In re January 2021 Short Squeeze Trading Litigation, Case 1:21-md-02989-CMA, executed April 28, 2023 and entered on the FLSD docket the same day. Rosen, Lead Counsel for Lead Plaintiff Blue Laine-Beveridge and the named plaintiffs, states that The Rosen Law Firm drafted a complaint that withstood Robinhood's motion to dismiss and has taken and defended depositions and engaged experts. The nine-page declaration states that a quality control check found errors, consisting of under-reporting or over-reporting of Class Period transactions, in certain Plaintiffs' PSLRA Certifications prepared by the firm, that the errors are the fault of the firm and not of the Plaintiffs, and that six Plaintiffs signed amended Certifications limited to the January 28, 2021 to February 4, 2021 Class Period.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Declaration of Laurence M. Rosen in Support of the Motion for Class Certification (Dkt. 559-2).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-04-28-covid-era-misc-ea0a2121-1/, SHA-256 ea0a212107ccd9c600203983de2889aa5279f5fca26d1bd8184e6a688013c34e.

Full text

Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 1 of 9

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

CASE NO. 21-2989-MDL-ALTONAGA/Damian

In re: JANUARY 2021 SHORT SQUEEZE
TRADING LITIGATION

This Document Relates to: All Actions Involving the Federal Securities Laws

DECLARATION OF LAURENCE M. ROSEN IN SUPPORT OF THE MOTION FOR
CLASS CERTIFICATION

I, Laurence M. Rosen, hereby declare under penalty of perjury:

1. I am the Managing Partner of The Rosen Law Firm, P.A., Lead Counsel for Lead

Plaintiff Blue Laine-Beveridge, named plaintiffs Abraham Huacuja, Ava Bernard, Brendan

Clarke, Brian Harbison, Cecilia Rivas, Doi Nguyen, Joseph Gurney, Marcel Poirier, Sandy Ng,

Santiago Gil Bohórquez, and Thomas Cash (collectively “Plaintiffs”). I make this Declaration in

support of Plaintiffs’ motion for class certification.

2. I am an attorney duly licensed to practice in the State of Florida and before this

Court. I have personal knowledge of the matters set forth herein and, if called upon, I could and

would completely testify thereto.

3. The Rosen Law Firm, counsel selected by Lead Plaintiff Laine-Beveridge in 2021,

is fully-prepared to prosecute this action. To date, counsel has drafted a complaint that withstood

Robinhood’s motion to dismiss, communicated with clients on a regular basis, extensively engaged

with Robinhood’s counsel on written and documentary discovery, taken and defended depositions,

engaged experts, and served third-party discovery.
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 2 of 9

4. The Rosen Law Firm is unaware of individual litigation commenced by any opt-

out investors.

5. In completing a quality control check during class certification discovery, the

Rosen Law Firm identified errors in certain Plaintiffs’ PSLRA Certifications that the Rosen Law

Firm had prepared for the clients and filed with the Court. These errors primarily consisted of

under-reporting or over-reporting certain Class Period transactions. The six Plaintiffs as described

below signed amended Certification forms which are now being filed with the Court as part of

their Class Certification Motion and are the operative Certifications. The Rosen Law Firm

prepared the list of stock transactions listed in each of the Plaintiffs’ original Certifications. Any

errors are the fault of the Rosen Law Firm and not any of the Plaintiffs. The amended Certifications

represent a complete list of each Plaintiff’s transactions in the Affected Stocks within the January

28, 2021 to February 4, 2021 Class Period, and all revisions comport with the brokerage statements

that Plaintiffs have produced to Robinhood in discovery. Below is a detailed explanation of the

nature of the changes made to each Certification:

a. Lead Plaintiff Blue Laine-Beveridge executed an amended Certification on April

27, 2023. See Ex. 4 at 5-6. The amended Certification lists only transactions within

the current January 28, 2021 to February 4, 2021 Class Period and only includes

the current list of Affected Stocks. See id.

b. Named Plaintiff Brian Harbison executed an amended Certification on April 11,

2023. See Ex. 4 at 7-8. While Mr. Harbison’s initial Certification contained

transactions before and during the Class Period, his amended Certification lists only

transactions within the January 28, 2021 to February 4, 2021 Class Period.

Compare Dkt. No. 527-1 at 8-9 with Ex. 4 at 7-8. In addition, what Mr. Harbison’s

2
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 3 of 9

initial Certification listed as a single sale of 200 shares of AMC during the Class

Period, Mr. Harbison’s amended Certification corrects to three separate sales

totaling 201 shares of AMC during the Class Period. See id.

c. Named Plaintiff Ava Bernard executed an amended Certification on April 4, 2023.

See Ex. 4 at 2-3. Ms. Bernard’s initial Certification contained transactions in AMC

from before and during the Class Period. Her Nokia transactions were mistakenly

omitted from her initial Certification. Her amended Certification contains a

corrected list of all AMC and NOK transactions within only the Class Period.

Compare Dkt. No. 527-1 at 4-5 with Ex. 4 at 2-3. Ms. Bernard is proceeding under

an assignment from her mother, Colleen Cooke. See Dkt. No. 527-1. Because the

initial assignment referenced only AMC shares, Ms. Cooke signed an amended

Assignment on April 4, 2023, assigning to Ms. Bernard her relevant claims in all

of the Affected Stocks. See Ex. 4 at 4.

d. Named Plaintiff Joseph Gurney executed an amended Certification on April 7,

2023. See Ex. 4 at 9-10. While Mr. Gurney’s initial Certification contained

transactions in BB from both before and during the Class Period, his amended

Certification contains a corrected list of all BB and AMC transactions only within

the Class Period. Compare Dkt. No. 527-1 at 14-15 with Ex. 4 at 9-10. In particular,

Mr. Gurney’s amended Certification includes his single Class Period AMC sale

which was mistakenly omitted from his initial certification.

e. Named Plaintiff Santiago Gil Bohórquez executed an amended Certification on

April 17, 2023. See Ex. 4 at 11-12. While Mr. Gil Bohórquez’s initial Certification

contained transactions in EXPR, NOK, and BB from before and during the Class

3
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 4 of 9

Period, his amended Certification contains a corrected list of all EXPR, NOK, BB

and AMC transactions only within the Class Period. Compare Dkt. No. 527-1 at

20-21 with Ex. 4 at 11-12. In particular, Mr. Gil Bohórquez’s amended Certification

includes his Class Period AMC purchases and sales which were mistakenly omitted

from his initial certification. Id. Mr. Gil Bohórquez’s amended Certification also

disaggregates two EXPR sales from February 1, 2021 which total 200 shares at the

same price. Id.

f. Named Plaintiff Thomas Cash executed an amended Certification on April 11,

2023. See Ex. 4 at 13-14. The purpose of the amendment was to add one purchase

of five shares of GME during the Class Period and one sale of five shares of GME

during the Class Period that were made in a different, infrequently used, account.

Compare Dkt. No. 527-1 at 22-23 with Ex. 4 at 13-14.

6. Attached hereto as Exhibit 1 is a true and correct copy of a report issued on or about

June 24, 2022, prepared by the Majority Staff of the Committee on Financial Services, U.S. House

of Representatives, entitled Game Stopped: How the Meme Stock Market Event Exposed Troubling

Business Practices, Inadequate Risk Management, and the Need for Regulatory and Legislative

Reform.

7. Attached hereto as Exhibit 2 is a true and correct copy of an article, dated February

22, 2021, written by Joey Klein in CEO World Magazine, entitled Why Robinhood Should Have

Just Told the Truth.

8. Attached hereto as Exhibit 3 is a true and correct copy of the Rebuttal Report of Dr.

Adam Werner.

4
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 5 of 9

9. Attached hereto as Exhibit 4 is a true and correct copy of the Plaintiffs’ amended

Certifications, as explained above.

10. Attached hereto as Exhibit 5 is a true and correct copy of the Corrected Expert

Report of Professor Steven Grenadier.

11. Attached hereto as Exhibit 6 is a true and correct copy of the Report of Daniel R.

Fischel.

12. Attached hereto as Exhibit 7 is a true and correct copy of an excerpted internal

Robinhood chat from January 27, 2021.

13. Attached hereto as Exhibit 8 is a true and correct copy of a tweet posted on January

28, 2021.

14. Attached hereto as Exhibit 9 is a true and correct copy of an excerpted internal

Robinhood chat from January 28, 2021.

15. Attached hereto as Exhibit 10 is a true and correct copy of a report issued on

October 14, 2021 by the U.S. Securities and Exchange Commission, entitled Staff Report on Equity

and Options Market Structure Conditions in Early 2021.

16. Attached hereto as Exhibit 11 is a true and correct copy of an excerpt from the

testimony of Gary Gensler, Chair of the U.S. Securities and Exchange Commission, before the

U.S. House of Representatives’ Committee on Financial Services, on May 6, 2021.

17. Attached hereto as Exhibit 12 is a true and correct copy of the Declaration of Dr.

Adam Werner.

18. Attached hereto as Exhibit 13 is a true and correct copy of the Declaration of

Abraham Huacuja in Support of Class Certification.

5
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 6 of 9

19. Attached hereto as Exhibit 14 is a true and correct copy of the Declaration of Ava

Bernard in Support of Class Certification.

20. Attached hereto as Exhibit 15 is a true and correct copy of the Declaration of Blue

Laine-Beveridge in Support of Class Certification.

21. Attached hereto as Exhibit 16 is a true and correct copy of the Declaration of

Brendan Clarke in Support of Class Certification.

22. Attached hereto as Exhibit 17 is a true and correct copy of the Declaration of Brian

Harbison in Support of Class Certification.

23. Attached hereto as Exhibit 18 is a true and correct copy of the Declaration of Cecilia

Rivas in Support of Class Certification.

24. Attached hereto as Exhibit 19 is a true and correct copy of the Declaration of Doi

Nguyen in Support of Class Certification.

25. Attached hereto as Exhibit 20 is a true and correct copy of the Declaration of Joseph

Gurney in Support of Class Certification.

26. Attached hereto as Exhibit 21 is a true and correct copy of the Declaration of Marcel

Poirier in Support of Class Certification.

27. Attached hereto as Exhibit 22 is a true and correct copy of the Declaration of Sandy

Ng in Support of Class Certification.

28. Attached hereto as Exhibit 23 is a true and correct copy of the Declaration of

Santiago Gil Bohórquez in Support of Class Certification.

29. Attached hereto as Exhibit 24 is a true and correct copy of the Declaration of the

Thomas Cash in Support of Class Certification.

6
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 7 of 9

30. Attached hereto as Exhibit 25 is a true and correct copy of an excerpted internal

Robinhood chat from January 28, 2021.

31. Attached hereto as Exhibit 26 is a true and correct copy of the January 29, 2021

All-Hands Agenda.

32. Attached hereto as Exhibit 27 is a true and correct copy of an excerpted exchange

between Representative Gonzalez and Robinhood CEO Vlad Tenev during Mr. Tenev’s testimony

before the U.S. House of Representatives’ Committee on Financial Services, on February 18, 2021.

33. Attached hereto as Exhibit 28 is a true and correct copy of the Rebuttal Expert

Report of Professor Steven Grenadier.

34. Attached hereto as Exhibit 29 is a non-exhaustive list of securities fraud cases in

which defendants unsuccessfully argued that plaintiffs’ damages model is not tailored to all factual

contours of the case.

35. Attached hereto as Exhibit 30 is a true and correct copy of the Rebuttal Report of

Daniel R. Fischel.

36. Attached hereto as Exhibit 31 is a true and correct copy of the Report of Daniel R.

Fischel, filed on January 20, 2004, in In re: Initial Public Offering Sec. Lit., 21-mc-92, 2004 WL

3943323 (S.D.N.Y.).

37. Attached hereto as Exhibit 32 is a true and correct copy of an excerpt from the

deposition testimony of Professor Steven Grenadier, from April 19, 2023.

38. Attached hereto as Exhibit 33 is a true and correct copy of an article, dated May 20,

2014, written by John H. Cochrane in the Chicago Booth Review, entitled Eugene Fama, Efficient

Markets and the Nobel Prize.

7
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 8 of 9

39. Attached hereto as Exhibit 34 is a true and correct copy of an article, written by

Daniel R. Fischel and published in 1989 in the Cornell Law Review, entitled Efficient Capital

Markets, the Crash, and the Fraud on the Market Theory.

I declare under the penalty of perjury that the foregoing is true and correct.

Executed: April 28, 2023

THE ROSEN LAW FIRM, P.A.

/s/Laurence M. Rosen
Laurence M. Rosen, Esq., Fla. Bar No. 0182877

8
Case 1:21-md-02989-CMA Document 559-2 Entered on FLSD Docket 04/28/2023 Page 9 of 9

CERTIFICATE OF SERVICE

I hereby certify that on April 28, 2023, a true and correct copy of the foregoing document
was served by CM/ECF to the parties registered to the Court’s CM/ECF system.

/s/Laurence M. Rosen

File and source

File: gov.uscourts.flsd.590042.559.2.pdf
Size: 167,625 bytes
SHA-256: ea0a212107ccd9c600203983de2889aa5279f5fca26d1bd8184e6a688013c34e
Our copy: gov.uscourts.flsd.590042.559.2.pdf
Original: archive.org