Litigation & Arbitration
Apr. 7, 2023
Robinhood to pay states $10M for shutting out investors
During the outages, which occurred over several days, investors were unable to buy, sell or trade securities through Robinhood. According to the plaintiffs’ filings, one of the outage days, March 2, 2020, was a record setting day for the Dow Jones Industrial Average and the Nasdaq, gaining almost 1,300 points and almost 400 points, respectively.
California and six other states will share an evenly split $10.2 million settlement payment from Robinhood Financial LLC for platform outages that blocked investors, including on a record trading day in March 2020.
A separate order from California’s Financial Industry Regulatory Authority in 2021 ordered Robinhood to pay restitution of $12,598,445.16 plus interest to the customers who suffered losses. The company agreed to pay a $57 millio...
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