Financial regulator hits Robinhood for $70 million for widespread and significant harm to customers By Michael Kaplan Former Robinhood workers speak out
The stock-trading app Robinhood was ordered to pay nearly $70 million Tuesday by financial regulators for misleading its customers, causing them to lose millions of dollars.
A major player in the recent stock market frenzy, Robinhood says its mission is to stand up for the little guy and democratize finance. But in a 123-page complaint, the Financial Industry Regulatory Authority said Robinhood inflicted widespread and significant harm to millions of customers by providing them with false information about their investments. FINRA, which has federal authority to regulate financial firms, said the company also failed to reasonably maintain its technology and neglected to do proper due diligence before approving customers for complex trades called options.
The investing platform announced new customer support features just weeks after a CBS News investigation detailed a pattern of customer service failures.
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A congressman asked Robinhood s CEO to listen to the 12-second message that ends with a hang-up when users call the support line businessinsider.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessinsider.in Daily Mail and Mail on Sunday newspapers.