Robinhood settles data breach class action for $20M - Top Class Actions
Robinhood settles data breach class action for $20M
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By Lauren Silva , Abraham Jewett
July 7, 2022
robinhood hack robinhood data breach
(Photo Credit: Ink Drop/Shutterstock)
Update:
Robinhood agreed to pay as much as $20 million to resolve claims the stock trading platform failed to prevent a 2020 data breach.
The settlement will provide thousands of hacked Robinhood customers with both compensation and two years of credit monitoring and identity theft protection services.
An estimated 40,000 of Robinhood’s customers had their information improperly accessed in the data breach.
The customers behind the class action lawsuit claim Robinhood failed to maintain industry standard security measures that would have prevented the unauthorized access.
Eligible class members with certain out-of-pocket losses will be able to claim up to $260 each with a payment cap of $500,000.
Robinhood hack class action lawsuit overview:
Where: The class action lawsuit is pending in California federal court.
Who: A California judge approved Robinhood customers’ class action claims against the trading platform.
Why: The plaintiffs brought forward adequate evidence to support their claims of privacy violations in the wake of the 2020 Robinhood hack that compromised the accounts of 2,000 customers.
(09/14/2021)
The second draft of a class action lawsuit accusing online trading platform Robinhood of negligence after a 2020 hack has been approved by a California judge, who also provided the opportunity for further improvements to the plaintiff’s claims.
The class action lawsuit, first filed earlier this year, claims that Robinhood violated privacy laws by failing to provide adequate security measures, resulting in a data breach affecting about 2,000 customers’ funds and personal information after a successful Robinhood hack in October of last year.
Robinhood Hack Led to Losses
US Magistrate Judge Susan Van Keulen rejected Robinhood’s dispute against the class action lawsuit, declaring that the complaint adequately backs up its claims of negligence, unlawful privacy practices, unfulfilled reimbursement, and “noneconomic losses” such as loss of time and sensitive personal information.
Judge Van Keulen still found some claims in the class action lawsuit lacking, but has given the plaintiffs another chance to elaborate on those claims that they “relied to their detriment” on Robinhood’s representations about its security measures and reimbursement policies. Plaintiffs do not need to “recall and specify precisely” which statements they relied upon, the judge maintains their case will be stronger with more specific evidence of which documents and statements Robinhood made when plaintiffs opened their accounts.
Robinhood recently made another bid to dump a class action lawsuit, this one claiming restrictions imposed during January’s “meme stock” trading hysteria involving GameStop and other stocks of high volatility cost investors billions.
Have you ever used Robinhood? Were you affected by the Robinhood hack last year? Tell us about your experience in the comments below!
The plaintiff is represented by Kevin Osborne, Julie Erickson, and Elizabeth Kramer of Erickson Kramer Osborne LLP.
The Robinhood Data Breach Class Action Lawsuit is Siddharth Mehta v. Robinhood Financial LLC, Case No. 5:21-cv-01013-SVK, in the U.S. District Court for the Northern District of California.
FOLLOW ARTICLE
4521
By Lauren Silva , Abraham Jewett
July 7, 2022
robinhood hack robinhood data breach
(Photo Credit: Ink Drop/Shutterstock)
Update:
Robinhood agreed to pay as much as $20 million to resolve claims the stock trading platform failed to prevent a 2020 data breach.
The settlement will provide thousands of hacked Robinhood customers with both compensation and two years of credit monitoring and identity theft protection services.
An estimated 40,000 of Robinhood’s customers had their information improperly accessed in the data breach.
The customers behind the class action lawsuit claim Robinhood failed to maintain industry standard security measures that would have prevented the unauthorized access.
Eligible class members with certain out-of-pocket losses will be able to claim up to $260 each with a payment cap of $500,000.
Robinhood hack class action lawsuit overview:
Where: The class action lawsuit is pending in California federal court.
Who: A California judge approved Robinhood customers’ class action claims against the trading platform.
Why: The plaintiffs brought forward adequate evidence to support their claims of privacy violations in the wake of the 2020 Robinhood hack that compromised the accounts of 2,000 customers.
(09/14/2021)
The second draft of a class action lawsuit accusing online trading platform Robinhood of negligence after a 2020 hack has been approved by a California judge, who also provided the opportunity for further improvements to the plaintiff’s claims.
The class action lawsuit, first filed earlier this year, claims that Robinhood violated privacy laws by failing to provide adequate security measures, resulting in a data breach affecting about 2,000 customers’ funds and personal information after a successful Robinhood hack in October of last year.
Robinhood Hack Led to Losses
US Magistrate Judge Susan Van Keulen rejected Robinhood’s dispute against the class action lawsuit, declaring that the complaint adequately backs up its claims of negligence, unlawful privacy practices, unfulfilled reimbursement, and “noneconomic losses” such as loss of time and sensitive personal information.
Judge Van Keulen still found some claims in the class action lawsuit lacking, but has given the plaintiffs another chance to elaborate on those claims that they “relied to their detriment” on Robinhood’s representations about its security measures and reimbursement policies. Plaintiffs do not need to “recall and specify precisely” which statements they relied upon, the judge maintains their case will be stronger with more specific evidence of which documents and statements Robinhood made when plaintiffs opened their accounts.
Robinhood recently made another bid to dump a class action lawsuit, this one claiming restrictions imposed during January’s “meme stock” trading hysteria involving GameStop and other stocks of high volatility cost investors billions.
Have you ever used Robinhood? Were you affected by the Robinhood hack last year? Tell us about your experience in the comments below!
The plaintiff is represented by Kevin Osborne, Julie Erickson, and Elizabeth Kramer of Erickson Kramer Osborne LLP.
The Robinhood Data Breach Class Action Lawsuit is Siddharth Mehta v. Robinhood Financial LLC, Case No. 5:21-cv-01013-SVK, in the U.S. District Court for the Northern District of California.
