Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Robinhood Reaches $19.5 Million Settlement With Hacking Victims

July 6, 2022, 5:19 PM

Customers who sued are seeking court approval to resolve claims that trading platform didn’t do enough to protect sensitive information.

  • Filing in northern California federal court says about 40,000 Robinhood customers alleged unauthorized users accessed their accounts since 2020
  • “A majority of these events involved no lost funds or unauthorized transactions, and Robinhood compensated those who did lose funds,” according to filing. “Still, the victims incurred various expenses and lost time responding to the hacks”
  • Settlement provides payment of up to $260 cash from a pool of $500,000, plus two years of credit monitoring and identity theft protection for affected customers
  • Filing says settlement has maximum value of over $19.5 million should all affected settlement class members accept it
  • Related News: Robinhood Hacking Victim Sues Trading Platform Over Security

To contact the reporter on this story:
Peter Blumberg in San Francisco at pblumberg1@bloomberg.net

To contact the editor responsible for this story:
Katia Porzecanski at kporzecansk1@bloomberg.net

© 2022 Bloomberg L.P. All rights reserved. Used with permission.