Bonnett, Fairbourn, Friedman & Balint, P.C. Files Class Action Relating to Securities Sold by Robinhood

SAN DIEGO--(BUSINESS WIRE)--Bonnett, Fairbourn, Friedman & Balint, P.C. filed a class action lawsuit on January 20, 2021, in the United States District Court for the Northern District of California, Case No. 3:21-cv-00415-SI, against Robinhood Financial LLC, Robinhood Securities, LLC, and Robinhood Markets, Inc. (collectively, “Robinhood”) on behalf of a proposed class of investors who used Robinhood’s brokerage services between September 1, 2016 and June 16, 2020 (the “Class Period”) to place investment orders in connection with which Robinhood received payment for order flow (the “Class”).

If you are a member of the putative Class described above, you may, no later than March 8, 2021, move the Court to serve as lead plaintiff of the putative Class. You may contact counsel listed below to discuss your rights with regard to the appointment of a lead plaintiff or your interests in joining the class action, or you may visit https://www.bffb.com/robinhood for more information. You may also retain counsel of your choice and need not take any action at this time to be a member of the Class.

The complaint generally alleges that Robinhood breached its fiduciary duties and violated section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) and Rule 10b-5 promulgated thereunder; California’s Corporations Code §§ 25401 and 255504.1; California’s Consumer Legal Remedies Act, Cal. Civ. Code §§ 1750 et seq.; and California’s Business & Professions Code §§ 17200 et seq. by breaching its duty of best execution, accepting less price improvement for its customers’ trades than what principal trading firms were offering in exchange for a higher rate of payment for order flow for itself, misrepresenting its receipt of such payments and the execution quality of its trades, omitting material revenue information from its website and other communications with customers, and covering up its order flow payments and poor execution quality.

The named plaintiff who purchased securities offered by Robinhood is represented by Patricia N. Syverson, and Carrie A. Laliberte of Bonnett, Fairbourn, Friedman & Balint, P.C., along with Laurence D. Paskowitz of The Paskowitz Law Firm P.C. and Adam Frankel of Greenwich Legal Associates LLC.