According to the Complaint, Robinhood Financial LLC offers self-directed securities brokerage services to customers by means of its website and smartphone applications. Robinhood is a Commission-registered broker-dealer and a member of Financial Industry Regulatory Authority (“FINRA”). Robinhood Financial acts as an introducing broker and has a clearing arrangement with Robinhood Securities. When customers open accounts with Robinhood, they enter into a customer agreement with Robinhood Financial and Robinhood Securities.

The Complaint alleges that during the Class Period, Defendants capitalized on a surge of first-time market investors by misleading and luring unsuspecting consumers to execute inferior market trades on the platform under the guise of “commission free” trading. The Complaint further alleges that Defendants misled consumers and failed to disclose that Robinhood’s business operations relied extensively upon “payment for order flow,” in which Defendants received payment from market makers in exchange for executing the service’s trades.

Plaintiff filed an amended Complaint on January 5, 2021. On April 12, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 20-CV-09328.

Lead Plaintiff filed a consolidated amended Complaint on May 17. Defendants filed a Motion to Dismiss the consolidated amended Complaint on June 29, 2021. On February 18, 2022, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.

Lead Plaintiff filed a second consolidated amended Complaint on March 8, 2022. Defendants filed a Motion to Dismiss the second consolidated amended Complaint on March 29. On October 13, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

On November 4, 2022, Defendants filed a Motion for Judgment on the Pleadings. The Court denied the Motion for Judgment on January 18, 2023.