Fun

Judge nods Robinhood’s $9M ‘refer-a-friend’ lawsuit settlement

News Feed - 2024-07-18 11:07:55

Martin Young6 hours agoJudge nods Robinhood’s $9M ‘refer-a-friend’ lawsuit settlementRobinhood has settled a long-running class-action lawsuit in Washington that involved unsolicited text spamming via its ‘refer-a-friend’ program.2127 Total views17 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksA United States federal judge has approved a $9 million settlement in a class-action lawsuit against the crypto and stock trading platform Robinhood.


On July 17, Robinhood Financial LLC was ordered to pay $9 million to settle a lawsuit regarding its “refer-a-friend” program, which enabled the sending of unsolicited text messages in Washington.


Judge Barbara Rothstein of the US District Court for the Western District of Washington agreed with the plaintiff’s motion that this violated the state’s consumer protection laws.


The judge also awarded $2.2 million in attorney fees which brought the final approval to a $9 million settlement.


Judge Rothstein stated that she found the settlement terms fair, reasonable, and adequate “in light of the complexity, expense, and duration of litigation, and the risks involved in establishing liability and damages.”


Terrell Marshall Law Group and Berger Montague filed the class action on behalf of all individuals who received a Robinhood referral program text message and were Washington state residents from August 2017 to February 2024.


However, it excluded those who consented to receive Robinhood referral program text messages.Robinhood offers rewards for friend referrals. Source:Robinhood


The Robinhood “refer a friend” program allowed users to generate and send texts to their phone contacts via the trading app inviting them to join the platform.


This violated Washington state’s Commercial Electronic Mail Act and Consumer Protection Act, according to the 2021 lawsuit.


Robinhood stock (HOOD) fell 1.8% on July 18 to settle at $24.18 in after-hours trading. However, the trading firm"s share prices have doubled since the beginning of this year.


Related:Robinhood to buy Bitstamp crypto exchange to enable institutional trading in US


It is not the first time Robinhood has been in legal hot water. In May, the US Securities and Exchange Commission issued an intent to file legal action against the firm, arguing that its crypto trading operations violated securities laws.


Nevertheless, that didn’t stop the company from expanding its crypto ambitions with the acquisition of leading crypto exchange Bitstamp in June.


Magazine: Coinbase will not mention ‘crypto’ in five years: Avichal Garg, X Hall of Flame# Law# Business# SMS# Robinhood# RegulationAdd reaction

News Feed

Corporate Crypto Reserve Status: Software Firm Snappa Swaps 40% Cash Reserves for Bitcoin
Corporate Crypto Reserve Status: Software Firm Snappa Swaps 40% Cash Reserves for BitcoinOn Monday, Canadian graphics software company, Snappa, revealed that it was holding bitcoin
Compass Mining Alerts Bitcoin Miners of Changes in Bitmain’s ASIC Design
Compass Mining Alerts Bitcoin Miners of Changes in Bitmain"s ASIC Design Compass Mining, a bitcoin mining firm, published a blog post stating that Bitmain, the company behind the a
Cryptopunk Owner Hopes to Sell Punk for $91 Million — Pixelated NFT Punks Outshine the Competition
Cryptopunk Owner Hopes to Sell Punk for $91 Million — Pixelated NFT Punks Outshine the Competition While traditional crypto assets have seen market sentiment d
LUNA, UST Move Closer to Zero, as Do Kwon Asks Holders to ‘Stay Strong’
LUNA, UST Move Closer to Zero, as Do Kwon Asks Holders to "Stay Strong" Do Kwon has urged holders of LUNA to “stay strong,” as the price moves ever closer to zero. Fo
$8M theft forces Bittensor network shutdown
Zoltan Vardai14 hours ago$8M theft forces Bittensor network shutdownAll user funds are safe following the network halt, according to the Bittensor team.1691 Total views3 Total sharesListen to article 0:00NewsOwn this pie
Report: Three Arrows Capital Liquidated for Millions, Sources Say Crypto Hedge Fund May Face Insolvency
Report: Three Arrows Capital Liquidated for Millions, Sources Say Crypto Hedge Fund May Face Insolvency According to “well-placed sources,” speaking with The Block re
Goldman Sachs Considering Bitcoin is Exactly How Best Wallet Is Slated to Reach $4.4bn of the Non-Custodial Market
Este artículo también está disponible en español. Sentiment from the head of a Wall Street giant signals good news for the cryptocurrency economy. Goldman Sachs CEO David
Why Bitcoin Tumbled Below 8K
Bitcoin prices briefly slipped below $8,000 each on Thursday for the first time in three months, though the cryptocurrency is still more than double its level at the start of 2019. What do these bold – and volatile
Guild of Guardians Is a Stunning Multiplayer RPG Where You Play to Earn Epic NFT Rewards
Guild of Guardians Is a Stunning Multiplayer RPG Where You Play to Earn Epic NFT Rewards sponsored Guild Of Guardians is a multiplayer RPG where players earn epic rewards. The proje
Bank of America, JPMorgan, Wells Fargo Collaborate to Launch Digital Wallet: Report
Bank of America, JPMorgan, Wells Fargo Collaborate to Launch Digital Wallet: Report Seven major banks, including Bank of America, JPMorgan Chase, and Wells Fargo,have reportedly te
Payments Company Square Rebrands to ‘Block Inc.,’ Crypto Service Will Be Called ‘Spiral’
Payments Company Square Rebrands to "Block Inc.," Crypto Service Will Be Called "Spiral" Following Jack Dorsey’s resignation announcement on Monday, two days later Dorsey&#x
Goldman Sachs lowers US recession risk to 20% — What it means for Bitcoin
Jesse Coghlan2 hours agoGoldman Sachs lowers US recession risk to 20% — What it means for BitcoinGoldman Sach’s economists said the Federal Reserve could also cut rates in September, and analysts say this could be we