Robinhood has agreed a $640,000 settlement with Vermont's financial regulator over a series of outages at the trading app in 2020.
The settlement is the latest hit Robinhood has faced over the outages, which occurred during major stock market volatility in March 2020 due to the Covid-19 pandemic.
At least 40 Vermont customers complained to Robinhood and/or the Vermont Department of Financial Regulation (DFR) because they could not enter, modify, or cancel investment orders. In addition, the firm did not provide live, telephone customer service support.
The settlement also covers Robinhood’s wholly automated process for determining which investors should be approved for high level option and margin trading.
Last year, Finra fined Robinhood $57 million and ordered the app to pay approximately $12.6 million in restitution, citing both the outages and options trading issue.
The company has also been targeted by Massachusetts securities regulators, in part over the outages, and been fined $65 million by the Securities and Exchange Commission for misleading customers about payment for order flow practices.