Class Action

Robinhood Faces Class Claims Over its ‘Refer a Friend’ Texts

Jan. 26, 2021, 5:59 PM

Robinhood Financial LLC will face class claims that its “Refer a Friend” marketing program violated state consumer protection law, after the U.S. District Court for the Eastern District of Washington granted certification.

Judge Thomas O. Rice approved on Monday a class comprising Washington residents who, at some time over the last four years, received a text message “initiated or assisted” by Robinhood without the recipient’s “clear and affirmative” advance consent.

Robinhood is an app that allows customers to invest in stocks, exchange-traded funds, and options “commission-free.” To promote its services, Robinhood launched a “Refer a Friend” program, which rewarded both...

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