Texas State Securities Board
Settlement with Robinhood Financial
April 2023– Austin, TX
The Texas State Securities Board (TSSB) has joined a multi-state settlement with Robinhood Financial which will pay up to $10.2 million in penalties for operational and technical failures. The settlement is a result of an investigation led by state securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota and Texas, coordinated through the North American Securities Administrators Association (NASAA).
The investigation was instituted as a result of Robinhood platform outages in March 2020. In addition, regulators found that 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.
Texas regulators found no evidence of willful or fraudulent conduct by Robinhood, and that Robinhood fully cooperated with the investigation. Link to Order.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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