Robinhood outages $9.9M class action settlement

Submitted by rcastine t3_126lmld in wallstreetbets

https://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/robinhood-outages-9-9m-class-action-settlement/

Robinhood agreed to pay a $9.9 million settlement to resolve claims that account holders lost money due to March 2020 outages.

The settlement benefits Robinhood account holders who engaged in one of three types of qualifying trades:

  • VWAP Loss Traders: Individuals who closed one or more positions on March 3, 2020, at a loss relative to the volume weighted average price (VWAP) of those positions during the March 2 and 3, 2020, outages.
  • SPY Options Traders: Individuals who held a Standard & Poor’s depository receipt (SPDR) S&P 500 option position expiring March 2, 2020, and experienced a loss relative to the VWAP of those options during the March 2, 2020, outage.
  • Failed Marketable Traders: Individuals who experienced a failed equity trade that became marketable during the March 2 and 3, 2020, outages at a loss relative to the price at the end of the outages and/or the transaction price obtained through March 4, 2020, OR Individuals who experienced a failed equity trade that became marketable during the March 9, 2020, outage at a loss relative to the price at the end of the outage and/or the transaction price obtained through March 10, 2020. 

On March 2, March 3 and March 9, 2020, Robinhood allegedly suffered from outages during which account holders were unable to access their assets. As a result, account holders allegedly lost money as they were unable to make trades and other decisions that could have yielded a significant profit. 

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VisualMod t1_je9l366 wrote

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>TL;DR: If you were unable to make trades or access your assets during the March 2, 3, and 9 outages, you may be eligible for a cash payment from the Robinhood class action settlement.
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VisualMod t1_je9l3o7 wrote

>This is an outrage! Robinhood should be forced to pay much more than $9.9 million to compensate account holders for their losses. Anyone who lost money due to the outages deserves to be compensated in full, with interest.

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unresolved-madness t1_je9lmii wrote

I was not able to make a significant profit from March 3, 2020 until March 2023. Can I get a check too?

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waxheartzZz t1_je9lms5 wrote

visualmod is a dumbass. holders werent really affected -- only those trying to make trades

​

I did get screwed over but that's my own fault for expecting exchanges to always be up (multiple exchanges had issues)

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ConradSchu t1_je9rjlj wrote

Oh man I remember that day so well. Tried so hard to get my positions in but couldn't. Robinhood initially was going to offer some sort of compensation for those who tried to take positions but couldn't and I submitted a ticket for it.

They responded with a list of my attempted trades and asked which one I felt I lost potential money on. They were all puts. Every one. I would've lost a lot of money if they went through. The outtage saved me money. So I decided we were even and closed the ticket.

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Klindg t1_jea9o2f wrote

This isn’t even a slap on the wrist lol.

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Score_Mindless t1_jeaai52 wrote

WAY TOO LOW of a settlement though...are ppl still using RH??? And....why??? 🤣😂🤣😂🤣😂

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TF_Sally t1_jeae9ec wrote

Replying to ConradSchu (#2,483,259)

I managed to submit a deeply ITM spy put order for less than the bid price and took a screenshot of it

I submitted a help desk ticket and threw in some language of volatile of finra best price duty or some such

They offered me $900 which was about my loss amount and I took that shit immediately

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aeywaka t1_jeans6c wrote

What're you gonna do with your .30 cents??

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SmoothConfection1115 t1_jeapq40 wrote

Alright, $9.9m

After attorney fees it’s probably what….$5M?

And after spreading that across their active users it’s going to amount to what? $2?

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lynkarion t1_jeaxb4n wrote

Lmao all the people affected will get a resolution of $3 tops

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ConradSchu t1_jeaz6hv wrote

Replying to McMarkyMarkMark (#2,491,043)

Because the big crash was followed the very next day with the largest intraday swing (upward) in market history. Considering it was day 2 of the crash, I thought it was a dead cat bounce. So I was trying to buy puts.

If you look at the charts for those first two weeks, each huge dip is immediately followed by an equal rally (fed injecting QE). It destroyed the put positions I was able to get (they were long term though) and heavily contributed to today's soaring inflation.

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GardinerAndrew t1_jeb9hzx wrote

I just got the settlement email. Luckily for me my payout is a whole $0.

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Brownwatersociety t1_jeb9k7x wrote

I got fucked from that outage, but they credited my account back in the day. Waiting to see if I get to double dip with the lawsuit.

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ourobboros t1_jebbbic wrote

Oh yeah. Didn’t we get like 3 months free of rh gold?

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FaithlessnessFar463 t1_jebcm88 wrote

I lost over 200k in profits from this. I consulted with an attorney and after a few weeks of back and fourth he said it wasn't worth the squeeze for them. I forgot about this but here I am being passed again.

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Atuk-77 t1_jebextv wrote

RobinHood was taken advantage of a mistake where many other companies where involve.

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BraidRuner t1_jecgu2y wrote

So about that buy button going missing..

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BootyOptions t1_jedgsg1 wrote

"Hi I lost $25000 because of this"

Okay well your proportional settlement of this money is $2.43 here you go.

1