🔥 Robinhood to Pay for Spamming
posted 18 Jul 2024
In 2021, a class-action lawsuit was filed against Robinhood in Washington, citing violations of Commercial Electronic Mail Act and Consumer Protection Act.
The plaintiffs, Cooper Moore and Andrew Gillette, accused Robinhood of allowing its customers to send unsolicited invitations to its referral program. Users received bonuses for each referral who signed up on the platform.
From August 2017 to February 2024, a total of 827,327 Washington residents received these referral messages. Over 51,000 of these individuals submitted claims for compensation.
The court ruled that Robinhood must pay $9 million in damages. Judge Barbara Rothstein highlighted that this settlement amount was reasonable, given the complexity, costs, and duration of the litigation.
Of the settlement funds, $2,250,000 will cover attorney fees and $142,400 will go toward court costs. Plaintiffs Moore and Gillett will each receive $10,000 for their contributions to the resolution of the case. The rest will be allocated for compensations to other claimants. Based on preliminary estimates, individual payments are expected to range between $111 and $170, depending on the number of valid claims submitted.
As of now, Robinhood has not made any public comments regarding the settlement.
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