HOUSTON, April 08, 2020 (GLOBE NEWSWIRE) -- Lawyers with Shepherd, Smith, Edwards, & Kantas (SSEK Law Firm) have been investigating claims involving Robinhood Financial. Robinhood Financial, which provides an online platform that facilitates stock, exchange-traded funds (ETFs), and other investment trades without charging commissions, recently experienced technical snafus that caused major outages and prevented trading on March 2nd and March 3rd last month. Throughout the US, investors have suffered massive losses in the wake of market volatility wrought by the novel coronavirus (COVID-19). While the upheaval caused by the pandemic is out of anyone’s control, fraud or negligence by brokers, brokerage firms, and trading platforms may have further exacerbated these losses.
The outages on Robinhood’s trading platform lasted long enough that on March 2nd alone, a day when there were record-breaking gains, none of its users were able to profit. In addition, it took almost a full day before Robinhood Financial issued an explanation for what had happened, citing an “unprecedented load” to the site that caused a DNS system failure, shuttering its App and Help center. While the company recently sent a letter to its customers apologizing for the glitches, the financial losses investors suffered as a result of these issues are being analyzed by SSEK Law Firm and may provide a basis for investor lawsuits.
The outages are not the first time that glitches have exposed Robinhood users to risks. In 2019, Robinhood Financial was ordered by the Financial Industry Regulatory Authority (FINRA) to pay a $1.25M fine for best execution violations and inadequate supervision related to equity orders that took place in 2016 and 2017. Also last year, another technical issue allowed users to trade stock using free cash.
If you or a loved one are a Robinhood investor and have suffered losses, contact SSEK Law Firm today for a free, no obligation, confidential evaluation of your investments and legal options.
Contact Info – 800-259-9010
Kirk Smith: ksmith@sseklaw.com
Sam Edwards: sedwards@sseklaw.com