Stock trading app Robinhood on Friday confirmed it is cooperating with inquiries from US regulators into its decision to temporarily throttle purchases of shares in companies such as GameStop during frenzied trading in January.

The free brokerage platform is facing inquiries from federal financial regulators, state attorneys general and the US Congress, according to a filing with the Securities and Exchange Commission.

Robinhood, which says it is "cooperating" with the entities, is already facing dozens of class action lawsuits.

Also read|&nbsp;<a href="https://www.wionews.com/technology/teslas-elon-musk-grills-robinhood-ceo-vladimir-tenev-over-gamestop-trading-freeze-360790">Tesla's Elon Musk grills Robinhood CEO Vladimir Tenev over GameStop trading freeze</a>

The lawsuits "generally allege breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, breach of fiduciary duty and other common law claims," Robinhood said in the filing.

"We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously."

Key players in the GameStop shares trading frenzy told skeptical US lawmakers last week that their actions were above board and in line with ordinary stock market business.

Also read|&nbsp;<a href="https://www.wionews.com/technology/gamestop-prompts-surge-in-hyper-rally-after-elon-musks-tweet-359791">GameStop prompts surge in hyper-rally after Elon Musk's tweet</a>

Founders of Robinhood and the online forum Reddit were among those to testify at a House of Representatives financial services committee hearing.

Unprecedented recent volatility -- with shares in the GameStop video game store surging more than 400 percent -- prompted calls for regulators to review the role of social media, hedge funds and trading platforms which some allege manipulated the market.

The GameStop Wall Street upheaval was sparked via a "subreddit" known as WallStreetBets.

"I am not trying to throw anyone under the bus," Robinhood co-founder and chief executive Vlad Tenev told the House committee meeting.

"All I can say is Robinhood played it by the books."

Stock trading app Robinhood on Friday confirmed it is cooperating with inquiries from US regulators into its decision to temporarily throttle purchases of shares in companies such as GameStop during frenzied trading in January.

Stock trading app Robinhood on Friday confirmed it is cooperating with inquiries from US regulators into its decision to temporarily throttle purchases of shares in companies such as GameStop during frenzied trading in January. The free brokerage platform is facing inquiries from federal financial regulators, state attorneys general and the US Congress, according to a filing with the Securities and Exchange Commission. Robinhood, which says it is "cooperating" with the entities, is already facing dozens of class action lawsuits. Also read| Tesla's Elon Musk grills Robinhood CEO Vladimir Tenev over GameStop trading freeze The lawsuits "generally allege breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, breach of fiduciary duty and other common law claims," Robinhood said in the filing. "We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously." Key players in the GameStop shares trading frenzy told skeptical US lawmakers last week that their actions were above board and in line with ordinary stock market business. Also read| GameStop prompts surge in hyper-rally after Elon Musk's tweet Founders of Robinhood and the online forum Reddit were among those to testify at a House of Representatives financial services committee hearing. Unprecedented recent volatility -- with shares in the GameStop video game store surging more than 400 percent -- prompted calls for regulators to review the role of social media, hedge funds and trading platforms which some allege manipulated the market. The GameStop Wall Street upheaval was sparked via a "subreddit" known as WallStreetBets. "I am not trying to throw anyone under the bus," Robinhood co-founder and chief executive Vlad Tenev told the House committee meeting. "All I can say is Robinhood played it by the books."

Trading app Robinhood says facing US regulator inquiries

Tesla chief Elon Musk grilled&nbsp;Vladimir&nbsp;Tenev,&nbsp;co-founder of online stock broker app Robinhood, which is under fire for blocking retail investors from purchasing GameStop stock.

Musk asked on private social audio app&nbsp;Clubhouse&nbsp;"Do you want to hear the real story from Vlad [from] Robinhood about what happened on the Street with GameStop?"

Also read:&nbsp;<a href="https://www.wionews.com/technology/gamestop-prompts-surge-in-hyper-rally-after-elon-musks-tweet-359791">GameStop prompts surge in hyper-rally after Elon Musk's tweet</a>

On the wide-ranging chat, Musk discussed memes, Mars, his companies, and vaccines, among other topics.&nbsp;

Clubhouse&nbsp;built a following among venture capitalists and startup founders gossiping in its audio-only chatrooms following its launch last March as the COVID-19 pandemic spread around the world. It provides&nbsp;an alternative forum to Twitter.

GameStop stock surged some 400 per cent&nbsp;in the past week after retail investors banded together to buy shares in the US&nbsp;video game retailer, sending hedge funds scrambling to cover losing bets.

Musk questioned&nbsp;Tenev saying&nbsp;"What happened last week? Why couldn't people buy the GameStop shares? The people demand answers, and they want to know the truth."

Tenev&nbsp;said the market rumour was untrue that Citadel Securities - the market-making arm of billionaire hedge-fund manager Ken Griffin - had pressured Robinhood into blocking retail investors.

"That's just false,"&nbsp;Tenev&nbsp;said, adding that Robinhood temporarily halted trading to meet regulatory capital requirements.

The Menlo Park, California-based company was founded in 2013 by Baiju Bhatt and&nbsp;Tenev, aiming to democratize finance. Its platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies.

Musk last week tweeted "Gamestonk!!," which many in the market interpreted as an apparent show of support for small investors. "Stonks" is a tongue-in-cheek term for stocks widely used on social media.

Tesla chief Elon Musk grilled Vladimir Tenev, co-founder of online stock broker app Robinhood, which is under fire for blocking retail investors from purchasing GameStop stock.

Tesla chief Elon Musk grilled Vladimir Tenev, co-founder of online stock broker app Robinhood, which is under fire for blocking retail investors from purchasing GameStop stock. Musk asked on private social audio app Clubhouse "Do you want to hear the real story from Vlad [from] Robinhood about what happened on the Street with GameStop?" Also read: GameStop prompts surge in hyper-rally after Elon Musk's tweet On the wide-ranging chat, Musk discussed memes, Mars, his companies, and vaccines, among other topics. Clubhouse built a following among venture capitalists and startup founders gossiping in its audio-only chatrooms following its launch last March as the COVID-19 pandemic spread around the world. It provides an alternative forum to Twitter. GameStop stock surged some 400 per cent in the past week after retail investors banded together to buy shares in the US video game retailer, sending hedge funds scrambling to cover losing bets. Musk questioned Tenev saying "What happened last week? Why couldn't people buy the GameStop shares? The people demand answers, and they want to know the truth." Tenev said the market rumour was untrue that Citadel Securities - the market-making arm of billionaire hedge-fund manager Ken Griffin - had pressured Robinhood into blocking retail investors. "That's just false," Tenev said, adding that Robinhood temporarily halted trading to meet regulatory capital requirements. The Menlo Park, California-based company was founded in 2013 by Baiju Bhatt and Tenev, aiming to democratize finance. Its platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies. Musk last week tweeted "Gamestonk!!," which many in the market interpreted as an apparent show of support for small investors. "Stonks" is a tongue-in-cheek term for stocks widely used on social media.

Tesla's Elon Musk grills Robinhood CEO Vladimir Tenev over GameStop trading freeze

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Trading app Robinhood says facing US regulator inquiries

Tesla's Elon Musk grills Robinhood CEO Vladimir Tenev over GameStop trading freeze