Robinhood is trying to argue its way out of a proposed class action lawsuit in California federal court filed by users who claim the trading platform went down during some of the most volatile days of COVID-19 and, as a result, they suffered major financial losses, Law360 reported.
Defendants Robinhood Markets Inc., Robinhood Financial LLC and Robinhood Securities LLC told U.S. District Judge James Donato that the latest version of users’ lawsuit is “so free of detail that it fails to even” explain how users were injured. “The reason for plaintiffs’ ‘shoot the moon’ approach is clear: any workable, non-fail-safe class definition properly limited to those harmed by the outages — if one exists — would be far narrower.”
The proposed class, made up of Robinhood users, claimed in August that the platform has gone down “47 times since March,” leaving users unable to access their accounts. Some of those outages came during some of the rockiest days the economy experienced during the COVID-19 pandemic. Unable to access their accounts or execute trades, many users claimed they suffered major financial losses, the lawsuit states.
The Robinhood users also argued that the platform sought inexperienced users with its “game-like interface.”
“Unfortunately for many Americans, losing investment and retirement funds or accruing colossal debt is not a game, and the consequences have been tragic,” the users said in their complaint.
The latest version of the lawsuit filed in August was guided by a diversified legal team at the request of Judge Donato. Beasley Allen’s Leslie Pescia is among the executive committee representing Robinhood users. Pescia, along with Dee Miles, head of the firm’s Consumer Fraud Section, James Eubank, and Jennie Anderson of Andrus Anderson LLP, originally filed the lawsuit in April on behalf of investors.
Class Action Litigation
Beasley Allen handles a variety of class action litigation similar to the one mentioned in this story. Consumer protection issues include cases that address economic losses. These types of claims are often handled in class action litigation, which involves joining a large number of people together in consolidated litigation against a company or other entity whose actions resulted in financial harm to the consumer. We are currently handling a number of class action lawsuits involving defective auto products and security failures that led to data breaches. For more information for these types of claims, contact Clay Barnett or Leslie Pescia, lawyers in our Consumer Fraud Section.