Robinhood data breach class action settlement

Update:

• This class action settlement is paying out $140
• Congratulations to everyone who filed a claim and got paid!

Robinhood agreed to a class action lawsuit settlement to resolve a class action lawsuit laying out a claim that the company failed to prevent a data breach that caused account takeovers.

The settlement benefits individuals who experienced an unauthorized access incident on their Robinhood account between Jan. 1, 2020, and April 27, 2022, that was either reported to Robinhood by customers or reported to customers by Robinhood.

Robinhood is an investment platform that allows individuals to invest their money without going through a bank or financial advisor. In 2020, Robinhood was the victim of a data breach in which unauthorized users gained access to customer accounts — allowing them to drain the accrued funds.

According to a data breach class action lawsuit, Robinhood failed to respond adequately to the data breach. Because the company had no phone number listed for customer service calls, customers were allegedly forced to contact Robinhood by email and “were left anxiously waiting for days or weeks while more funds were depleted from their accounts.” 

The plaintiffs claim Robinhood customers lost millions as a result of the data breach. Despite promising to cover 100% of all losses caused by unauthorized activity, Robinhood allegedly denied some requests for reimbursement without any explanation.

Robinhood hasn’t admitted any wrongdoing but agreed to a $20 million class action settlement to resolve these claims. Robinhood has allocated up to $500,000 for class member payments.

Under the terms of the Robinhood settlement, class members can receive a cash payment based on their experiences following the data breach. 

Class members can receive up to $100 for out-of-pocket expenses related to the data breach, including communication charges, unreimbursed account losses, bank fees and more. 

Class members can receive additional payments of up to $100 for credit monitoring or identity-theft protection and up to $60 for lost time. In total, class members can receive a cash payment of up to $260 from the settlement.

Further reimbursement may be available for customers whose accounts were accessed by unauthorized parties as a result of the data breach but who were previously denied reimbursement for their losses.

Robinhood has also agreed to make security changes to prevent future data breaches. These changes include two-factor authentication, password screening, proactive monitoring, customer awareness campaigns and real-time voice support.

The deadline for exclusion and objection is Nov. 3, 2022. 

The final approval hearing for the Robinhood data breach settlement is scheduled for May 16, 2023.

In order to receive benefits under the Robinhood settlement, class members must submit a valid claim form by Jan. 17, 2023.

Who’s Eligible

The settlement benefits individuals who experienced an unauthorized access incident on their Robinhood account between Jan. 1, 2020, and April 27, 2022, that was either reported to Robinhood by customers or reported to customers by Robinhood.

Potential Award

Up to $260

Proof of Purchase

For reimbursement of credit monitoring or identity theft products or services that you paid for because of unauthorized access to your Robinhood account. Requires documentation showing the amount you paid and when.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/17/2023

Case Name

Siddharth Mehta, Kevin Qian, and Michael Furtado v. Robinhood Financial LLC and Robinhood Securities, LLC, Case No. 5:21-cv-01013-SVK, in the United States District Court for the Northern District of California

Final Hearing

05/16/2023

Settlement Website

RobinhoodAccountTakeOverSettlement.com

Claims Administrator

Mehta v. Robinhood Settlement
Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Info@RobinhoodAccountTakeoverSettlement.com
844-511-1424

Class Counsel

Julie Erickson
Elizabeth Kramer
Kevin Osborne
ERICKSON KRAMER OSBORNE LLP

Defense Counsel

Tiffany Cheung
Mark David McPherson
Nicole V Ozeran
MORRISON & FOERSTER LLP