Online stock trading platform and broker-dealer Robinhood Financial moved closer to paying $20 million as part of a class-action settlement with thousands of customers whose accounts were allegedly accessed by unauthorized users.
From January 2020 through April 2022, Robinhood “used substandard security practices and lacked security measures used by other broker-dealer online systems,” according to a motion for settlement filed July 1 in U.S. District Court for the Northern District of California. A California magistrate judge granted preliminary approval of the deal Tuesday, according to court documents.
