A court in the state of Washington has approved a $9 million settlement in a lawsuit against Robinhood, the popular crypto and stock brokerage platform. The settlement addresses claims that Robinhood sent unsolicited promotional text messages to thousands of residents in violation of Washington state laws.
Plaintiffs Cooper Moore and Andrew Gillette initiated the lawsuit, arguing that Robinhood’s referral program breached the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act by sending text messages without recipients’ consent.
The referral program allowed existing users to send messages to their contacts, inviting them to join Robinhood. Both the referrer and the new user would then receive a reward in the form of free stock upon sign-up. The program aimed to boost user engagement and expand the platform’s user base.
As part of the settlement, Robinhood will establish a $9 million Settlement Fund for the benefit of affected individuals. Judge Barbara J. Rothstein of the U.S. Western District Court of Washington approved the motion filed by Moore and Gillette, deeming the terms of the settlement satisfactory.
The settlement class comprised approximately 827,327 consumers who allegedly received unsolicited text messages from Robinhood. The resolution comes after over two years of legal proceedings and extensive negotiations, with a substantial number of claims submitted.
Each participating member is set to receive a cash payment between $111 and $170 based on the validation of their claims.
The settlement also includes provisions for Moore and Gillette’s legal counsel, who will receive $2,250,000 in attorneys’ fees and $142,400 in litigation expenses from the settlement fund. Additionally, Moore and Gillette will each receive $10,000 as service payments for their involvement in the case.
Robinhood, known for its commission-free trading services, expanded into the cryptocurrency market in 2018. The platform initially offered trading for Bitcoin and Ethereum and later added other cryptocurrencies like Dogecoin, Bitcoin Cash, and Litecoin.
Despite the settlement, Robinhood has not issued a comment on the matter at this time.
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In conclusion, the $9 million settlement between Robinhood and plaintiffs Cooper Moore and Andrew Gillette in the state of Washington marks the resolution of a legal dispute regarding unsolicited text messages sent by the brokerage platform. The approval of the settlement by Judge Barbara J. Rothstein signifies a significant step towards compensating affected individuals and addressing the alleged violations of Washington state laws by Robinhood’s referral program. While the settlement brings closure to this particular case, it also highlights the importance of protecting consumer rights and privacy in the digital age. With the growing prevalence of digital marketing and communication channels, it is crucial for companies to ensure compliance with relevant regulations and respect user consent when engaging in promotional activities. Through this settlement, both the plaintiffs and Robinhood have reached a resolution that upholds legal standards and provides restitution to impacted consumers. As we navigate the evolving landscape of digital commerce and communication, cases like this serve as a reminder of the need for transparency, accountability, and ethical practices in business operations. For more trending news articles like this, visit DeFi Daily News.
