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Securities Law

Robinhood Customer Class Outage Suit Sent Back to State Court

Oct. 20, 2020, 3:02 PM

Robinhood failed to keep a customer’s would-be class suit over platform outages in federal court, after a judge in California ruled the case didn’t involve securities claims and so wasn’t precluded by federal law.

Robinhood Financial LLC faced a wave of customer suits after its trading platform crashed amid market volatility at the beginning of the coronavirus pandemic. The fintech firm removed the case here from state court, and it was consolidated with a dozen others in the U.S. District Court for the Northern District of California in July.

It belongs back in state court, Judge James Donato said....

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