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Robinhood Lawsuit Over 2020 Trading Outages to Move Forward

SIPC Says It Has Serious Concerns About Robinhood's New Product
Photographer: Bloomberg/Bloomberg

A lawsuit alleging Robinhood customers lost money due to outages of the company’s trading service in March 2020 will move forward after a judge refused to throw it out.

U.S. District Judge James Donato in San Francisco ruled that the customers have alleged an injury concrete enough for the suit to advance. The judge pushed the two sides hard to settle the litigation.

“This is an unusual case in the sense that, as the plaintiffs have acknowledged, Robinhood has pretty much said this is a problem,” Donato said. “There was ownership and apology, and that’s 80% of the battle in most cases.”

Read More: Robinhood Offers $15 Outage Credits As Lawsuit Filed in Florida

The judge ordered the parties to find a mediator to begin negotiations to “save some money and save some time.”

In re: Robinhood Outage Litigation, 20-cv-01626, U.S. District Court, Northern District of California (San Francisco).