Bloomberg Law
May 27, 2022, 3:31 PM

Robinhood Reaches Settlement of Suits Over 2020 Trading Outage

Steve Stroth
Steve Stroth
Bloomberg News

Lawyers for Robinhood Markets Inc. said they had reached an agreement in principle to resolve litigation by some investors who were blocked from trading shares in high-flying stocks during an outage in March 2020. No details were disclosed.

“Once final details are resolved, and within 60 days of this notice, the parties will file a motion for preliminary approval of the settlement,” the attorneys said in a federal court filing Thursday.

Multiple investors sued Robinhood in several states, mostly alleging restrictions by the trading platform that amounted to a breach of contract, court records show. Cases in California were consolidated ...