Robinhood Outage Suits Consolidated in California Federal Court

A California federal court granted a motion to consolidate 13 proposed class action suits against Robinhood Financial LLC, arising out of the platform’s outages during the market swings in the early stages of the Covid-19 pandemic in early March 2020.

As coronavirus set off violent swings in global stocks, the Silicon Valley-based trading platform crashed, preventing customers from making securities trades, the suits said.

The consolidated suits seek to certify a class of all Robinhood users in the United States, with a subclass of customers who weren’t able to execute trades on options that expired during the outage in March. ...