Robinhood data breach class action settlement
Top Class Actions reports that the Robinhood investment platform has agreed to settle litigation stemming from an incident in 2020 that resulted in some customers having their accounts taken over.
According to a data breach class action lawsuit, Robinhood failed to respond adequately to the data breach. Because the company had no phone number listed for customer service calls, customers were allegedly forced to contact Robinhood by email and “were left anxiously waiting for days or weeks while more funds were depleted from their accounts.”
Robinhood customers allegedly lost millions as a result of the data breach. Despite promising to cover 100% of all losses caused by unauthorized activity, Robinhood allegedly denied some requests for reimbursement without any explanation.
As is generally the case, Robinhood does not admit any wrongdoing, but they agreed to a $20 million settlement.
Robinhood has also agreed to make security changes to prevent future data breaches.
The case is Siddharth Mehta, Kevin Qian, and Michael Furtado v. Robinhood Financial LLC and Robinhood Securities, LLC, Case No. 5:21-cv-01013-SVK, in the United States District Court for the Northern District of California.
The final approval hearing for the Robinhood data breach settlement is scheduled for May 16, 2023.
The official settlement website is: RobinhoodAccountTakeOverSettlement.com
Source: Top Class Actions