Robinhood Settles with U.S. States for $10.2M Over Technical Failures and Investor Harm.
Robinhood is set to pay up to $10.2 million in penalties for operational and technical failures that harmed investors, according to a multi-state settlement. The investigation was spearheaded by securities regulators in California, Alabama, Colorado, Delaware, New Jersey, South Dakota, and Texas. This isn't Robinhood's first multi-million dollar penalty, as the platform has previously paid settlements to the New York State Department of Financial Services and the U.S. Securities and Exchange Commission for regulatory violations.