Robinhood Accused of Offering $75 Compensation with “No Lawsuit” Catch

Robinhood Accused of Offering $75 Compensation with “No Lawsuit” Catch

Robinhood suffered long outages earlier this month, specifically on day when the market was rebounding, which cost traders possibly billions in profits. recent show of goodwill came with strings attached, according to some users. So this week the company started offering credit to a group of clients and apologized for its recent multiple-day outage. But this “$75 goodwill credit” that is being offered comes with a catch. If they accept, customers waive their legal rights. Some earlier credit was only for $15.

Attorneys for users who are suing the beleaguered online brokerage company asked a federal judge in Florida to order Robinhood to stop sending “misleading communications” and to void any releases already signed by customers, Bloomberg reports. A federal lawsuit was filed in Florida following a two-day outage at the stock-trading platform. “This breach caused Plaintiff and class members to miss out on some of the highest single-day market gains in recorded history,” the lawsuit claims.

Robinhood explained in an emailed statement to Bloomberg that it is just trying to quickly compensating customers who contact the company on a “case-by-case review.” The company said it aims to compensate customers before the conclusion of the litigation to avoid a long wait. Claims that Robinhood is attempting to block customers from participating in any class action are inaccurate, according to the statement.

And if you still want to sign up for Robinhood, you can get a free stock.

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6 thoughts on “Robinhood Accused of Offering $75 Compensation with “No Lawsuit” Catch

  1. Robinhood is still holding my $1,xxx.xx hostage, that it continued to let me deposit assets in 2017-2018, months AFTER it silently “restricted” my account in 2017, WITHOUT any notice. I would have never found out about this surrepticious account restriction, until I was met with repeated failures when triing to withdraw a small sum months later. These scumbags still refuse to let me withdraw any of my assets (but obviously still let me deposit), and of course, they don’t let me close my account either, since they’ve “restricted” my account. That’s how shady Robinhood has been, for years.

  2. Pingback: Recap: Loans Getting Tougher, Robinhood Catch & More - Doctor Of Credit

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