Robinhood’s legal woes continue. The most recent allegations, filed by a disgruntled client on behalf of himself and others who use the mobile app and online trading platform, allege that the firm breached its fiduciary duty to clients.
In a class action complaint filed in U.S. District Court for the Northern District of California Jan. 15, Robinhood is accused of “material omissions, misrepresentations, and concealment” of its “dark pool” of payments for order flow arrangements.
The “inferior execution prices they caused was a breach of Robinhood’s fiduciary duty” to the plaintiff, Edward Luparello of Santa Barbara, California, and others who use its platform, the complaint alleges.
Through its actions, Robinhood violated the Securities Exchange Act of 1934, as well as California’s Corporations Code, Consumer Legal Remedies Act, Civil Code and Unfair Competition Law, the complaint alleges.
The plaintiff seeks unspecified damages and restitution on behalf of himself and the class. Robinhood declined to comment on the complaint Friday.