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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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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FiskThicc t1_jeaztsh wrote

Yea , visit

https://www.ssa.gov/benefits/disability/

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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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sub-t t1_je9sydi wrote

That's the best thing I've read this morning. It would have been great had they invoiced you with the associated loses you didn't incur.

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Sllyce t1_jea3vbs wrote

Wow , what if we just don’t trade and save even more money

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ConradSchu t1_jea5nw9 wrote

I have found this to be true 99% of the time regardless what is happening.

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Sllyce t1_jea67ds wrote

Maybe we should be the ones paying Robinhood for the outage

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ConradSchu t1_jea78xr wrote

Or if they would actually require proof of trading experience before enabling options trading. But then they would go bankrupt in a week.

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TF_Sally t1_jeae9ec wrote

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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NoleScole t1_jectlum wrote

The outage saved me a lot of money too. I also had all puts, and I gained the next opening day

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McMarkyMarkMark t1_jeakl2o wrote

I’m not sure how puts in March 2020 could have lost money. Until the eom when printer go brrr

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ConradSchu t1_jeaz6hv wrote

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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McMarkyMarkMark t1_jebnp22 wrote

Crazy. I turned like ~$6k to $43k Feb to March by being a 🏳️‍🌈🐻.

March 23 JPow kicked up the printer and I lost a lot of gains.

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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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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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LordBaikalOli t1_jebak9o wrote

Sums up about every collective lawsuit in the US

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WSBNon-Believer t1_jebuouf wrote

Facebook was giving out like 500 last year in IL cause of the lawsuit against them, that was dope

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JCC114 t1_jeg11i7 wrote

Then the google checks for same issue are $35ish. Roughly same size settlement, but no one slept on signing up for that one after seeing people getting the FB checks.

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icbint t1_jedhewt wrote

2 bucks Should cover my loss nicely

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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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TrueNeutrino t1_jeanv5s wrote

$10M is a cost-of-doing-business fee

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aeywaka t1_jeans6c wrote

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

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Klindg t1_jea9o2f wrote

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

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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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VisualMod t1_je9l366 wrote

User Report
Total Submissions 2 First Seen In WSB 2 years ago
Total Comments 30 Previous Best DD
Account Age 8 years [^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.) [^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
>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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lynkarion t1_jeaxb4n wrote

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

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SMK_12 t1_jeb5hj7 wrote

I got like $60

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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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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.

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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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