National investment fraud lawyers KlaymanToskes encourages Robinhood investors who suffered losses in the March 2020 outage to explore their legal options in light of the recent class action settlement.
On March 2, 2020, Robinhood suffered an outage where its customers missed out on the biggest one-day point gain in Dow in history at the time. The application’s glitches caused furor among its customers, which Robinhood investors suffered lost opportunities and were unable to move money while the stock markets swelled. The next week, on March 9, 2020, Robinhood suffered additional outages that coincided with a volatile day for the stock market amidst the economic fallout from COVID-19 and other economic factors. For instance, the Dow Jones Industrial Average tanked 2,000 points, while the S&P 500 plunged 7.6%, and the Nasdaq Composite fell 7.3%.
In May 2022, Robinhood filed a notice in its pending federal court case in California stating that it was resolving details of a settlement agreement relating to the March 2020 outages. The company stated that it would seek court approval of the settlement within 60 days. The filing did not provide any details of the settlement damages.
Class action lawsuits are designed to recover damages for a group or “class” of investors who sustained investment losses due to the same cause of action and security at issue. Many individual investors participate in class action lawsuits because the size of their loss is too small to merit an individual litigation claim, known as a securities arbitration claim.
While a class action lawsuit may help a group of investors with smaller losses, the larger an individual investor’s losses, the more likely a securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) would result in a greater investment loss recovery. Generally speaking, as investment losses increase securities arbitration is a better path to recover investment losses for individual investors.
Many Robinhood customers suffered investment losses as a result of the March 2020 system outage. Former and current customers of Robinhood with losses in excess of $100,000, and those with information relating to the handling of their accounts during the March 2020 outage, are encouraged to contact Lawrence L. Klayman, Esq. at 1-888-997-9956.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.