Robinhood to Pay $9.9 Million to Settle Class Suit Over Outages

Robinhood Financial LLP will pay $9.9 million to settle a class action filed by investors who claim they suffered financial losses from high-profile network outages caused by defects in its technology infrastructure.

Judge James Donato of the US District Court for the Northern District of California gave the deal preliminary approval Dec. 2, after the parties revised the settlement to address the court’s concerns regarding notice, administrative fees, a related state court case, and other issues.

The settlement class includes nearly 157,000 Robinhood accountholders who experienced losses related to the platform’s outages on March 2-3, 2020 and March 9, 2020. ...