Chamath was partly right that Robinhood would face substantial class‑action litigation over the January 2021 GameStop and other meme‑stock trading restrictions, but wrong about the company being "sued into oblivion."

What happened:

• By March 2021, Robinhood disclosed it had become aware of roughly 50 putative class actions and several individual actions in various courts specifically related to its early‑2021 trading restrictions, alleging breach of contract, fiduciary duty, negligence, antitrust, and securities violations—i.e., exactly the kind of suits seeking recovery of users’ trading losses that Chamath described.【0search4】0search6】 Independent reporting at the time likewise counted dozens of class actions tied to the GameStop halt.【0search2】0search9】0search11】
• These cases were consolidated in the multidistrict litigation In re January 2021 Short Squeeze Trading Litigation in the Southern District of Florida, with separate "tranches" for Robinhood‑specific state‑law claims, antitrust claims, and federal securities claims.【0search0】2search3】
• The MDL court dismissed the core Robinhood contract/fiduciary‑duty tranche, and in 2023 the Eleventh Circuit affirmed, holding that Robinhood’s customer agreement expressly gave it discretion to restrict trading and that the plaintiffs failed to state claims for breach of contract or fiduciary duty.【2search0】 The antitrust tranche was also dismissed, with the Eleventh Circuit affirming dismissal for failure to plausibly allege an unreasonable restraint of trade.【2search2】2search3】 Some federal securities claims survived a motion to dismiss in 2022, but those represent a narrowed subset of the original wave of lawsuits rather than existential liability.【2search1】
• Meanwhile, Robinhood completed a multibillion‑dollar IPO in July 2021 and remains an active, publicly traded company. It has paid various regulatory fines (including a record $70 million FINRA penalty in 2021 and roughly $30 million more in FINRA fines and restitution in 2025, plus SEC penalties), and it recently saw an SEC crypto investigation closed with no enforcement action.【0search5】2news12】2news13】2news14】2news15】 None of this resembles being litigated "into oblivion"; the company continues operating and raising capital.

Assessment:

• The narrow element of the prediction—"extensive class action litigation seeking recovery for losses from the restrictions"—did come true.
• The central thrust—that Robinhood would be "sued into oblivion" (i.e., existentially crippled or effectively destroyed by those suits)—did not. Most key claims were dismissed on the pleadings and appellate review, and Robinhood remains a functional, publicly traded broker with manageable (though non‑trivial) legal and regulatory costs.

Because the defining part of the prediction was that litigation would effectively ruin Robinhood, which clearly did not happen, the prediction is best classified as wrong, albeit with a partially accurate premise about the volume and type of lawsuits.