In early March, as the stock market spiked, the Robinhood trading platform went off line. The outage was corrected after the market closed on Monday, March 2, 2020, but the trading platform failed again on Tuesday, March 3, 2020. Many Robinhood clients were unable to move their positions, and others watched as their portfolios plummeted without the ability to do anything to prevent the loss. Robinhood is reportedly under investigation by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) for this outage, according to Bloomberg. https://www.bloomberg.com/news/articles/2020-08-31/robinhood-s-rise-brings-dark-side-of-irate-traders-u-s-probes
Details on the investigation are scarce, but Bloomberg reports that it has received information from a source involved in the joint investigation. A major focal point of the investigation is how the company handled and responded to a major service disruption in March.
If you were one of the unfortunate individuals who suffered a loss in your Robinhood account due to this preventable outage, you might be entitled to compensation. We currently represent several Robinhood investors and have obtained favorable results for these clients. Depending on the facts of your case, you have the right to bring a claim against Robinhood for its negligence. Robinhood has offered to work on compensating users “on a case-by-case basis” and has offered users three months of Robinhood Gold services. This $15 credit/offer is simply not enough for most individuals who suffered a loss in their accounts.
If you have lost $50,000 or more in your Robinhood account due to the obvious negligence of Robinhood, we encourage you to contact our office for a free consultation with one of our securities attorneys. We are a nationwide litigation law firm that helps investors recover investment related losses. Our experienced attorneys aggressively pursue claims on behalf of clients who have been damaged as the result of negligence, fraud and misconduct by their financial advisors and brokerage firms.