$9 Million Robinhood “Refer-A-Friend” Settlement Deal Approved By Judge
Crypto trading platform and investment app Robinhood has formally settled a $9 million class-action lawsuit stemming from its “Refer-A-Friend” program, new court documents reveal.
The financial services app was originally sued back in 2021 by Cooper Moore and Andrew Gillette for allegedly violating consumer protection laws in Washington state by sending unsolicited text messages aimed at advertising the user rewards program.
Judge Barbara Rothstein officially signed off on the agreement on Wednesday, July 17, with $2.2 million of the “Refer-A-Friend” settlement’s total set aside to pay for attorney’s fees.
“The Court finds that the terms of the Settlement Agreement are fair, reasonable, and adequate in light of the complexity, expense, and duration of litigation, and the risks involved in establishing liability and damages and maintaining the class action through trial and appeal,” the motion reads.
News of the settlement deal comes just two months after Robinhood was served with a Wells Notice from the United States Securities and Exchange Commission (SEC), indicating the federal regulators’ intent to file an enforcement action against the crypto trading and investment platform.
Robinhood has received a Wells notice from the SEC over its crypto business, indicating that the agency's crackdown on crypto could soon ensnare one of the most popular US brokerage firms. Comes after Wells notices to Uniswap Labs and Consensys last month https://t.co/otEiMQgfCa
— Alexander Osipovich (@aosipovich) May 6, 2024
While no expletive legal challenge was provided, the future enforcement action “may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding and may seek remedies that include an
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