'Send Your Lawyers': Robinhood Isn't Backing Down From AMC Over Stock Tokens

In brief

• Robinhood rejected AMC’s demand to halt trading in tokens tied to its stock.
• Lawyers said AMC’s potential claims could depend on trademark use and whether buyers are misled.
• Lawyers also argued that stock tokens could broaden access to U.S. markets.

Robinhood has rejected AMC Entertainment’s demand to stop trading tokens tied to its stock, with the brokerage’s top lawyer challenging the theater chain to pursue its legal threats.

“Send your lawyers and we’ll educate them,” Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, wrote on X in response to AMC CEO Adam Aron.

Gallagher, a former Securities and Exchange Commission commissioner, said Robinhood knows “a little something about the U.S. securities laws” and would not “‘DECIST,’” repeating the misspelling in Aron’s demand.

Robinhood CEO Vlad Tenev shared the post, adding: “We stand behind Stock Tokens.”

Aron accused Robinhood of marketing a security that poses as AMC stock without complying with U.S. securities laws. He questioned its use of an issuer in Jersey and argued that the tokens undermine shareholder rights and companies’ control over capital raising.

“I hereby call on you and Robinhood to voluntarily CEASE AND DECIST the trading of AMC stock tokens,” Aron wrote. “If you don’t, our high priced securities counsel has been asked to see whether we can force you to stop.”