Investing

Robinhood Financial Hit With Class-Action Suit for Selling Stock Orders

Photographer: Andrew Harrer/Bloomberg
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Robinhood Financial LLC was sued in a proposed class action for allegedly failing to inform clients it was selling their stock orders to trading firms and effectively charging back-door commission fees.

The complaint filed Wednesday in San Francisco federal court follows the company’s $65 million settlement last week with the U.S. Securities and Exchange Commission over similar allegations.