Robinhood Finishes Settlement For Misrepresenting Referral Program

IconCryptoNewsTerminal Staff17 Jul, 2024

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Robinhood Finishes Settlement For Misrepresenting Referral Program

Robinhood has agreed to pay $9 million to settle a class-action lawsuit accusing the company of promoting a referral program without proper regulatory approval. The settlement was approved by a federal judge, according to a Cointelegraph report. The lawsuit alleged that Robinhood misled users by implying that their referral program was approved by the U.S. Securities and Exchange Commission (SEC), when it had not been.
The settlement requires Robinhood to pay $9 million to a fund that will be distributed to class members who have submitted valid claims. Robinhood must also make changes to its referral program to ensure that it complies with SEC regulations. This settlement is a significant victory for Robinhood users who were misled by the company's referral program. It sends a message to other companies that they cannot mislead users about their products or services.

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