Robinhood loses bid to halt enforcement of Massachusetts fiduciary rule
The online trading app sued to overturn the state's fiduciary rule after Massachusetts accused Robinhood of manipulating customers.
May 28, 2021
Robinhood Markets lost a bid to immediately stop Massachusetts securities regulators from enforcing a new rule that holds brokers accountable to a fiduciary standard of care.
Superior Court Judge Kenneth Salinger denied Robinhood’s request for an injunction against the state rule but invited further argument from the online brokerage. “Robinhood will suffer no irreparable harm” if enforcement proceeds, Salinger said in an eight-page ruling.
The company said it’s pleased the court will address the validity of the measure.