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Robinhood accused of offering snafu credits to squelch suit

70 pointsby rococodeabout 5 years ago

5 comments

JumpCrisscrossabout 5 years ago
&gt; <i>accused of offering a “$75 goodwill credit” to dupe customers into waiving their legal rights</i><p>Curious to see what the e-mails look like. On one hand, settling a claim is a real thing. The present value of $75 may exceed the expected claim the recipients would receive out of the suit.<p>On the other hand, we&#x27;re in the midst of record joblessness and a pandemic-induced liquidity squeeze. If it&#x27;s dangling cash without informed consent, it could be construed as bad-faith negotiating.
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AndrewBissellabout 5 years ago
Between this kind of chicanery and their constant coding goofs, keeping your money at Robinhood just seems like a great way to wind up standing in line at SIPC waiting for your account to be reimbursed someday. Now that they&#x27;ve pushed lots of other brokers into fee-free trading I don&#x27;t know what the appeal is.<p>I worked in algorithmic trading for about 4 years. In that time, I witnessed the market find and exploit the tiniest, most inconsequential-seeming bugs in my code in ways I could never have imagined or planned for. Finance and &quot;move fast and break things&quot; just do not mix. Someday, I expect to see a news headline about how some HFT sharks on Wall Street found a way to take Robinhood and its clients for billions, and that will be the end of it.
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theartfuldodgerabout 5 years ago
On their previous outage&#x2F;lockout they offered me a $75 gift card.<p>I included the same offer email as a forward to finra and they offered me $725 shortly after.<p>I accepted.<p>They may have lost me the opportunity to have had 10k profit, but maybe I wouldn&#x27;t have held, who knows, but by a fluke I came out 2.5k ahead after being locked out of my account for 3 days.<p>I took all my cash out that day so didnt have anything in play for this outage.<p>I actually tried to transfer in money that morning but that failed too.
gowldabout 5 years ago
I wouldn&#x27;t worry. Class action suits almost always settle for a large amount but tiny per class member. So by buying off some people early, the remainder each get a larger share of the class action settlement.
brentisabout 5 years ago
Given how they monetize their users, i wouldnt be suprised if it was to dupe customers.