Robinhood Loses Attempt to Dismiss Claims Over Spam Texts

Robinhood Financial LLC has to face claims that it sent unwanted spam texts, after a federal judge in Seattle ruled that the company played a substantial role in sending out the messages.

Cooper Moore and Andrew Gillette filed the proposed class action against the online investments brokerage servicer, claiming that its “Refer a Friend” program violates Washington state’s Commercial Electronic Mail Act and Consumer Protection Act.

The plaintiffs claim that Robinhood assists in enabling the referral text messages, which are sent when users ask their contacts to join the platform in exchange for a reward.

Although Robinhood argued that it ...