Robinhood agreed to pay a $9.9 million settlement to resolve claims that account holders lost money due to March 2020 outages.
The settlement benefits Robinhood account holders who engaged in one of three types of qualifying trades:
- VWAP Loss Traders: Individuals who closed one or more positions on March 3, 2020, at a loss relative to the volume weighted average price (VWAP) of those positions during the March 2 and 3, 2020, outages.
- SPY Options Traders: Individuals who held a Standard & Poor’s depository receipt (SPDR) S&P 500 option position expiring March 2, 2020, and experienced a loss relative to the VWAP of those options during the March 2, 2020, outage.
- Failed Marketable Traders: Individuals who experienced a failed equity trade that became marketable during the March 2 and 3, 2020, outages at a loss relative to the price at the end of the outages and/or the transaction price obtained through March 4, 2020, OR Individuals who experienced a failed equity trade that became marketable during the March 9, 2020, outage at a loss relative to the price at the end of the outage and/or the transaction price obtained through March 10, 2020.
On March 2, March 3 and March 9, 2020, Robinhood allegedly suffered from outages during which account holders were unable to access their assets. As a result, account holders allegedly lost money as they were unable to make trades and other decisions that could have yielded a significant profit.
h/t rcastine