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.