Robinhood Compromised User Information, New Class Action Lawsuit Claims

Robinhood Stolen Data Class Action Lawsuit Overview: 

• Who: Adam Zullo, David Perez, Thomas Barretti and Thomas Richardson have filed a class action lawsuit against Robinhood.
• Why: The plaintiffs allege the company failed to safeguard the confidential information of millions of current and former Robinhood customers .
• Where: The class action lawsuit is pending in New York federal court.

Robinhood Markets, Inc. compromised the confidential information of millions of current and former customers, according to a new class action lawsuit. 

The confidential information was stolen on or about Nov. 3 by an unauthorized party who socially engineered a customer support employee by phone and obtained access to customer support systems, according to a statement Robinhood made on Nov. 8.

The unauthorized party obtained a  list of email addresses for approximately  5 million people and full names for a different group of approximately 2 million people.  The company also says it believes that approximately 310 people had additional personal information, including name, date of birth and zip code exposed, with a subset of approximately 10 customers having more extensive account details revealed. 

“The confidential information that was compromised in the data security incident can be used to gain unlawful access to the users’ other online accounts, carry out identity theft or commit other fraud and can be disseminated on the internet, available to those who broker and traffic in stolen PII,” the lawsuit states. 

Furthermore, the lawsuit alleges the incident could have been avoided through basic security measures, authentications and training.

“As a result of defendant’s failure to take reasonable steps to adequately protect the PII of current and former Robinhood users, plaintiffs’ and class members’ PII is now on the internet for anyone and everyone to acquire, access, and use for unauthorized purposes for the foreseeable future,” according to the lawsuit.

The plaintiffs seek to recover damages and other relief resulting from the incident, including but not limited to, compensatory damages, reimbursement of costs and declaratory judgment and

injunctive relief to mitigate future harms that are certain to occur in light of the scope of this breach.

Robinhood has faced other class actions recently over its stock restrictions. In September, Robinhood and other financial service firms asked a judge to dismiss class action lawsuits filed against them alleging they colluded and violated antitrust laws by temporarily restricting transactions of volatile stocks, including GameStop.

Did you have your PII compromised in the Robinhood breach? Let us know in the comments! 

The plaintiff is represented by Philip M. Hines of Held & Hines, LLP. 

The Robinhood Stolen Data Class Action Lawsuit is Zullo, et al. v. Robinhood Markets, Inc., Case No. 1:21-cv-06253, in the U.S. District Court for the Eastern District of New York.

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