Robinhood to pay $10M in settlement with state securities regulators

The North American Securities Administrators Association said Robinhood Financial will pay up to $10.2M in penalties for "operational and technical failures that harmed main street investors." The settlement stems from an investigation spearheaded by state securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota and Texas regarding Robinhood’s operational failures with respect to the retail market, the agency said in a statement. The investigation was sparked by Robinhood platform outages in March 2020. "Today’s multistate agreement represents states at their best – working together for the benefit of Main Street investors," said NASAA President Andrew Hartnett. "Robinhood repeatedly failed to serve its clients, but this settlement makes clear that Robinhood must take its customer care obligations seriously and correct these deficiencies." Robinhood neither admits nor denies the findings as set out in the States’ orders. Reference Link