*Note CCC is not a claims administrator, nor can we provide any information on the status of claims. Please do not reach out with questions about a specific claim, but we are happy to continue helping people file claims.
For many Americans, Robinhood opened the doors to a new kind of investing freedom. Millions of people were kept out of the traditional equities market with high account balance requirements and minimum income restrictions, but Robinhood changed all of that. By 2020 there were over 13,000,000 users on Robinhood and they had over $60B in assets under custody. People were excited about the future. Even when COVID hit, folks were at home casually trading more frequently than they otherwise would.
Unfortunately on March 2, 2020, in the midst of the COVID era trading frenzy, Robinhood’s operating system crashed and left consumers in the dark about whether they’d be able to access their funds that day. Shortly after this major outage, a class action lawsuit was filed against Robinhood to attempt and find justice for millions of investors that were temporarily unable to make trades that would capitalize on gains, mitigate losses and change the risk profile of their accounts.
Robinhood failed to mitigate the risk of a crash by not investing in infrastructure and people want to see them pay for this. According to an economic expert brought in by plaintiffs in this case, “Across all positions held by Class members at the time of the March 2, 2020 Outage, I estimate that the decline in equity and options values combined from the DLOM totaled $202,132,094.”
Although they are not accepting any guilt, Robinhood has settled with the plaintiffs and is in the process of putting together the motion for preliminary approval of the settlement, but there is no sense of how much will be paid out. CCC will continue to track this case closely and if you believe you were impacted by the Robinhood outage of March 2020 please feel free to reach out to Omar at email@example.com
Please note there is no settlement website at the moment, but stay tuned for updates.