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In a filing submitted today, online trading company Robinhood may have to pay at least $26.6 million to settle probes by the Financial Industry Regulatory Agency (FINRA) over outages and options trading incidents from last year.
The settlement may include compensation for consumers. FINRA is a Wall Street regulator tasked with protecting investors. In addition to the recent controversy and class action lawsuits filed over trade stoppages this year, Robinhood has also been criticized over a March 2020 outage that left customers unable to access their accounts. FINRA is now investigating the company, joining New York’s attorney general and other regulators also investigating the app, The Wall Street Journal reports.
Robinhood’s policies and practices have sparked a number of class action lawsuits. Top Class Actions will continue to follow the regulators investigation of the company and report notable developments.
How the online investment app displays information has also come under fire after a young investor reportedly died by suicide after his Robinhood app indicated he was over $700,000 in debt after an options trade. The investor’s family has since filed a wrongful death lawsuit against Robinhood, blaming the company for misleading their son about his investments and provided “virtually nonexistent” customer service, according to The Wall Street Journal.
According to the filing, Robinhood is reviewing how it displays its trading information and customer communication options.
Robinhood could face fines and be required to pay restitution to customers as a result of the FINRA probe. In addition, the company may be forced to bring in outside help to ensure it is in compliance with financial regulations. The embattled online broker is also facing a myriad of litigation, including class action lawsuits, over shutting down chat room fueled trades in early 2021.
Have you been affected by an outage, options trading, or trade stoppage issue while using the Robinhood app? Tell us about your experience in the comment section below.
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26 thoughts onRobinhood Could Be on the Hook for $26.6M in Probe Settlement After Outages
Same as most above
I want and I tried for hours buying stuck on Robin Hood GameStop and I am still trying to buy a dodge coin they won’t let you buy or sell they’re just playing with us
Yep and on the day they halted trading. I already owned stock in AMC but was halted from buying and selling. I screenshoted all my issues but was def scammed by Robinhood
Count me in
Robinhood stopped a lot of us from making purchases and prevented a lot of us from making money. Count me in.
March 2020 outages did affect me, but I am unsure of what data I will need to prove that, but am interested in this lawsuit.
Please add me
I was unable to complete various stock transactions because Robinhood app was shut down. Please add me.
Add me. Was Blocked from purchases.
Yes! They only allows sales and not purchases of certain stock, so manipulating the market and my profits.