Indiana has joined in a $10 million multi-state settlement with Robinhood
The settlement stems from an investigation that was sparked by Robinhood platform outages in March 2020, a time when hundreds of thousands of investors were relying on the Robinhood app to make trades.
In addition, prior to March 2021, there were deficiencies at Robinhood in its review and approval process for options and margin accounts, weaknesses in the firm’s monitoring and reporting tools, and insufficient customer service and escalation protocols that in some cases left Robinhood users unable to process trades even as the value of certain stocks was dropping.
In the settlement with Robinhood, Indiana will receive $200,000 as its share of this settlement in penalties for operational and technical failures that harmed Main Street investors.
The settlement funds will be distributed between the Securities Enforcement Fund and the State of Indiana General Fund. Indiana Securities Division found no evidence of willful or fraudulent conduct by Robinhood, and that Robinhood fully cooperated with the investigation. The settlement does not affect any individuals or class action suits against Robinhood.
