Beasley Allen lawyer Leslie Pescia is one of nine attorneys nationwide appointed by U.S. District Judge James Donato to the Executive Committee and Liaison Counsel for the Robinhood Outage Litigation. The litigation involves consumer protection claims arising out of a two-day outage for Robinhood’s securities trading platform, which began March 2, 2020. The class action was consolidated in the United States District Court for the Northern District of California with Judge Donato presiding.
“It’s an honor to be selected by Judge Donato to serve the court in a leadership role on the Executive Committee,” Pescia said. “This is very important litigation that exposes how the defendant’s poor planning and failure to deliver the services it promised blocked its customers from participating in the stock market during a significantly critical time. I look forward to working with the rest of the committee and legal team as we seek to hold Robinhood accountable and ensure that investor protection is a top priority.”
Class members allege that Robinhood breached its contract to provide safe and secure investing services to its clients. It further alleges that Robinhood was grossly negligent for not anticipating the demand and for having no contingencies for outages in the form of either backup computer systems or personnel to handle client orders.
The system-wide outage blocked all Robinhood clients from their accounts, preventing them from moving their money – buying, selling, or trading – on a day when the Dow Jones Industrial Average logged its largest single-day point gain in Dow history at that time.
Pescia has extensive experience handling complex litigations including other national class actions and multidistrict litigations. She has helped secure millions in settlements for financial institution clients, which experienced significant economic loss as a result of data breaches. Pescia also helped handle the highly successful BP Oil Spill litigation early in her career.
In addition to Pescia, Beasley Allen lawyers Dee Miles, head of the firm’s Consumer Fraud Section, and James Eubank, partnered with Jennie Anderson of Andrus Anderson LLP in April to file the suit on behalf of the investors. The team filed the class action lawsuit in April.