Robinhood agrees to $10.2 million settlement with seven states
Delaware will get about $200,000 from a $10.2 million national settlement with the stock buying app Robinhood.
The settlement is split between Alabama, Colorado, California, Delaware, New Jersey, South Dakota and Texas, according to the Delaware Department of Justice.
The lawsuit and settlement stems from an investigation of Robinhood’s multiple outages in March 2020, preventing hundreds of thousands of users from making trades.
Trading on Robinhood was down on March 2, 2020, which was restored the following day at 2 a.m., and down again the following week on March 9, 2020, which was restored on the same day.
A DOJ press release said the settlement resolves several violations including Robinhood putting out incorrect information to investors, failing to have a proper ID program, failing to supervise their technology, failing to field customer questions, failing to do due diligence before approving accounts, and failing to report complaints to regulators.
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