Robinhood agreed to pay a $9.9 million settlement to resolve claims that account holders lost money due to March 2020 outages.
On March 2, March 3 and March 9, 2020, Robinhood allegedly suffered from outages during which account holders were unable to access their assets. As a result, account holders allegedly lost money as they were unable to make trades and other decisions that could have yielded a significant profit.
Robinhood is an investment platform that allows consumers to invest in stocks, cryptocurrency and other investments on their own instead of investing through a financial advisor or other professional service.
Robinhood hasn’t admitted any wrongdoing but agreed to a $9.9 million class action settlement to resolve these allegations.
Robinhood Outages Class Action Lawsuit
- Who’s Eligible:
- The settlement benefits Robinhood account holders who engaged in one of three types of qualifying trades:
- VWAP Loss Traders: Individuals who closed one or more positions on March 3, 2020, at a loss relative to the volume weighted average price (VWAP) of those positions during the March 2 and 3, 2020, outages.
- SPY Options Traders: Individuals who held a Standard & Poor’s depository receipt (SPDR) S&P 500 option position expiring March 2, 2020, and experienced a loss relative to the VWAP of those options during the March 2, 2020, outage.
- Failed Marketable Traders: Individuals who experienced a failed equity trade that became marketable during the March 2 and 3, 2020, outages at a loss relative to the price at the end of the outages and/or the transaction price obtained through March 4, 2020, OR Individuals who experienced a failed equity trade that became marketable during the March 9, 2020, outage at a loss relative to the price at the end of the outage and/or the transaction price obtained through March 10, 2020.
- The settlement benefits Robinhood account holders who engaged in one of three types of qualifying trades:
- Estimated Amount: Varies
- Proof of Purchase: N/A
- Claim Form Deadline: 05/01/2023 (Exclusion and Objection Deadline)
- Case Name & Number:
- In re: Robinhood Outage Litigation, Case No. 3:20-cv-01626-JD, in the U.S. District Court for the Northern District of California.
- How to file a claim:
- Head over to the Claim Form.
- Read over the claim form to see if you are eligible.
- Complete the claim form with your info.
- Submit your claim form to receive your potential award!
(Click here to file a claim)
Bottom Line
Don’t forget to take a look at our full list of Class Action Lawsuit Settlements! Be sure to give our list of No-Proof Class Action lawsuit to see other settlements you may qualify for.
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