Robinhood lawsuit settlement finalized with $9 million

The Washington Western District Court has concluded a lawsuit against Robinhood over unsolicited marketing messages with a $9 million settlement.

The lawsuit, filed by plaintiffs Cooper Moore and Andrew Gillette, centered around Robinhood’s refer-a-friend campaign, specifically targeting messages sent by Robinhood clients to their contacts without explicit consent. Furthermore, the plaintiffs argued that Robinhood facilitated sending these messages by incentivizing users with rewards such as free stocks, providing technological means within the Robinhood App to send texts, suggesting contacts for referral messages, and even drafting the content of these messages.

Judge Rothstein deemed the $9 million settlement fair and reasonable, considering the continued litigation’s complexity and potential costs. The settlement applies to a defined class of individuals, Washington residents who received Robinhood referral program texts between August 9, 2017, and February 13, 2024, excluding those who explicitly consented to receive such messages or opted out of the class.

Robinhood lawsuit settlement finalized with $9 million

As part of the settlement, the court allocated $2,250,000 for attorneys’ fees and $142,407.76 for reimbursable expenses. Additionally, the court awarded Class Representatives Cooper Moore and Andrew Gillette $10,000 each for their representation of the class during the litigation.

The Court also authorized payments to the Settlement Administrator from the settlement fund to oversee distribution to affected individuals. Moreover, this resolution marks the conclusion of a legal battle highlighting concerns over digital marketing practices and consumer privacy.

In recent years, Robinhood has been scrutinized for various aspects of its operations, including user communications and compliance with consumer protection laws. The settlement underscores the importance of transparent communication practices in digital marketing campaigns and consumers’ rights to control their data and communications.

In Conclusion, Robinhood settled a lawsuit in the Washington Western District Court regarding unsolicited marketing messages with a $9 million agreement. The settlement includes $2.25 million for attorneys’ fees, $142,407.76 for expenses, and $10,000 awards to each class representative.

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