Robinhood data breach class action overview:
- Who: A Robinhood customer is suing the company.
- Why: The plaintiff alleges the company’s negligence led to a data breach that exposed customer information.
- Where: The Robinhood class action was filed in California federal court.
Robinhood has been hit with a class action lawsuit accusing it of negligence after a data breach allegedly exposed sensitive customer information.
Plaintiff Tyrone Hammonds filed the class action complaint against Robinhood Markets Inc. on Nov. 22 in a California federal court, alleging violations of state and federal consumer laws.
The lawsuit accuses the financial services platform known for its stock trading tools of failing to secure the personally identifiable information (PII) of its users, including Social Security numbers.
Ransomware gang targeted Robinhood systems, stole millions of records, lawsuit claims
According to the complaint, the Robinhood data breach occurred when the BASHE ransomware gang accessed Robinhood’s systems, stealing millions of records.
After Robinhood reportedly refused to pay a ransom by the group’s Oct. 17, 2024, deadline, BASHE began releasing the stolen data on the dark web, Hammonds says.
The lawsuit claims that Robinhood’s failure to implement adequate cybersecurity measures made the breach possible. Customers entrusted their PII to the company with the understanding it would be protected, but the compromised data is now allegedly being used for identity theft, fraud, and other criminal activities, Hammonds says.
The lawsuit outlines several harms suffered by affected users, including invasion of privacy, theft of PII, and the financial and emotional toll of mitigating identity theft risks. Customers may face ongoing threats, such as fraudulent tax filings, unauthorized loans, and government benefit scams, Hammonds says.
He also claims that Robinhood failed to notify affected customers promptly and adequately about the breach, further compounding their risks.
As a result, the lawsuit seeks to represent anyone in the United States who was affected by the Robinhood data breach.
Hammonds is suing for negligence breaches of the Federal Trade Commission Act and the Gramm-Leach-Bliley Act, and seeks certification of the class action, damages, fees, costs, a jury trial and a court order forcing Robinhood to improve its data security practices.
Earlier this year, Robinhood agreed to a $9 million settlement to resolve a class action lawsuit claiming its referral text messages violated Washington telemarketing laws.
What do you think of the allegations in this Robinhood class action lawsuit? Let us know in the comments.
The plaintiff is represented by John J. Nelson of Milberg Coleman Bryson Phillips Grossman PLLC and Jeff Ostrow of Kopelowitz Ostrow P.A.
The Robinhood class action lawsuit is Tyrone Hammonds v. Robinhood Markets Inc., Case No. 3:24-cv-08321 in the U.S. District Court for the Northern District of California.
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614 thoughts onRobinhood class action alleges data breach exposed customer info
Please add me my credit is messed up because of robinhood
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Add me they lost the stock that I had with them wouldn’t let me in had to change my password to get in and all of my stock was gone .