Robinhood Forced to Face Consumer Claims Over Hacked Accounts

May 7, 2021, 3:44 PM

Trading platform Robinhood Markets Inc. failed to dodge a lawsuit claiming lax security measures led to a hack that resulted in a combined loss of millions of dollars from customer accounts.

Legal claims brought on behalf of about 2,000 Robinhood customers whose accounts with the popular online brokerage were hacked can proceed, a federal judge in the U.S. District Court for California’s Northern District ruled Thursday.

The lawsuit alleges violations of laws including the California Consumer Privacy Act, which gives consumers in the state certain rights over their personal information.

Robinhood sought to block the suit, arguing it shouldn’t be ...

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