Robinhood must face customers' lawsuit alleging it hid trading costs:
A U.S. judge on Wednesday said Robinhood Markets Inc must face a lawsuit by customers who ...
reuters.com/markets/robinhood-must-face-lawsuit-concerning-order-flows-2023-01-18/
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Robinhood Faces Lawsuit Over Hidden Trading FeesA US judge allowed a class action covering Robinhood users from 2016 to 2020 who faced undisclosed costs.
Key FactsJan 19, 2023 · Reading time: ~30 sec.
Summary created with AI assistance · Source: reuters.com
Summary created with AI assistance · Source: reuters.com
- A federal judge ruled that Robinhood must face a class action accusing it of concealing true trading expenses.
- The lawsuit claims Robinhood earned unusually high fees via payment for order flow from external brokers.
- Plaintiffs argue this led to worse trade prices compared to competitors charging commissions.
- The proposed class includes Robinhood users in the US who traded between September 2016 and June 2020.
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