KlaymanToskes announces an investigation on behalf of investors who sustained losses in excess of $100,000 from the inappropriate options trading approval from Robinhood Financial LLC (“Robinhood”). On June 30, 2021, the Financial Industry Regulatory Authority (“FINRA”) disclosed that Robinhood agreed to a Letter of Acceptance, Waiver and Consent relating, in part, to inappropriately approving customers for options trading.
Specifically, since Robinhood began offering options in December 2017, the firm relied on flawed computer algorithms with only limited oversight by firm principals, which resulted in inappropriately approving thousands of customers who did not satisfy the firm’s eligibility criteria or whose accounts contained red flags that options trading may not be appropriate for them. The inappropriate trading approval occurred despite the firm’s written supervisory procedures assigning registered options principals the responsibility of approving accounts for options trading.
Investors may seek damages in a FINRA arbitration if they were approved for options trading levels and suffered losses. According to securities attorney, Lawrence L. Klayman, “Robinhood is responsible for reasonably supervising and exercising due diligence for its system for approving customers for options trading, and they may be liable for any resulting investment losses sustained by customers.”
The sole purpose of this release is to investigate the alleged financial misconduct of Robinhood in its inappropriate options trading approval. Investors with losses in excess of $100,000 are encouraged to contact Lawrence L. Klayman, Esq. of KlaymanToskes at (561) 542-5131 and lklayman@klaymantoskes.com, or visit our website at www.klaymantoskes.com.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net‐worth, ultra‐high‐net‐worth, and institutional investors, such as non‐profit organizations, unions, public and multi‐employer pension funds. KlaymanToskes has office locations in California, Florida, New York and Puerto Rico.