Summary of Robinhood’s $9 Million Settlement Over Unsolicited Text Messages
A court in Washington approved a $9 million settlement related to Robinhood’s referral program sending unsolicited promotional text messages. The lawsuit claimed the program violated state laws by sending messages without consent. The settlement was to benefit around 827,327 consumers who received the texts, with each expected to receive between $111 to $170 in cash payments.
Details of the Settlement Approval
– The settlement amount was agreed upon by Robinhood to establish a non-reversionary Settlement Fund
– Judge Rothstein approved the motion, deeming the terms reasonable and adequate
– The settlement included approximately 827,327 consumers who received the unsolicited texts
– A notice plan reached 96% of the settlement class members, with over 51,000 claims submitted
– Each participant is set to receive a cash payment depending on the number of validated claims
Legal Expenses and Compensation
– Moore and Gillette’s counsel approved for $2,250,000 in attorneys’ fees and $142,400 in litigation expenses
– Moore and Gillette each granted $10,000 as service payments for their involvement in the case
Robinhood’s Expansion Into Crypto Market
– Robinhood, initially a commission-free trading platform, entered the crypto market in 2018
– Users could initially trade Bitcoin and Ethereum, with later additions including Dogecoin, Bitcoin Cash, and Litecoin
Hot Take: Analysis of Robinhood’s Settlement
– Robinhood’s $9 million settlement highlights the importance of compliance with laws regarding unsolicited messages
– The approval of the settlement emphasizes the significance of protecting consumer rights and privacy in the digital age
Sources:
– [Law360](https://www.law360.com/fintech/articles/1858887/robinhood-s-9m-promo-text-suit-settlement-gets-final-nod)
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