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Robinhood Accused of Offering Credits for Snafu to Squelch Suits

March 27, 2020, 6:41 PM

Robinhood Financial Inc., facing lawsuits over crashes on its trading platform amid violent stock market swings, is now being accused of offering a “$75 goodwill credit” to dupe customers into waiving their legal rights.

Attorneys for users who are suing the beleaguered company asked a federal judge in Florida to order Robinhood to stop sending “misleading communications” and to void any releases already signed by customers.

“We view this type of activity by Robinhood as a calculated attempt to wipe out users’ class action claims without informing the users that they can instead participate in the class action should ...