$9 Million Robinhood “Refer-A-Friend” Settlement Deal Approved By Judge

Crypto Trading Robinhood SEC
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Julia Smith
Author Categories
About Author

Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Crypto trading platform and investment app Robinhood has formally settled a $9 million class-action lawsuit stemming from its “Refer-A-Friend” program, new court documents reveal.

Crypto Trading Platform Robinhood Settles Refer-A-Friend Lawsuit


The financial services app was originally sued back in 2021 by Cooper Moore and Andrew Gillette for allegedly violating consumer protection laws in Washington state by sending unsolicited text messages aimed at advertising the user rewards program.

Judge Barbara Rothstein officially signed off on the agreement on Wednesday, July 17, with $2.2 million of the “Refer-A-Friend” settlement’s total set aside to pay for attorney’s fees.

“The Court finds that the terms of the Settlement Agreement are fair, reasonable, and adequate in light of the complexity, expense, and duration of litigation, and the risks involved in establishing liability and damages and maintaining the class action through trial and appeal,” the motion reads.

Robinhood Hit With Wells Notice From The SEC


News of the settlement deal comes just two months after Robinhood was served with a Wells Notice from the United States Securities and Exchange Commission (SEC), indicating the federal regulators’ intent to file an enforcement action against the crypto trading and investment platform.

While no expletive legal challenge was provided, the future enforcement action “may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities.”

The move by the SEC may be seen as part of its larger campaign of regulation-by-enforcement toward the digital asset sector and could challenge Robinhood on its compliance with U.S. securities laws.

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business,” Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets, Inc said in a statement at the time. “We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law.”

The lack of a clear regulatory framework across the digital asset sector in the United States has been a hot-button topic for the blockchain industry, with concerns that the lack of clarity may drive emerging digital finance companies overseas.

More Articles

Blockchain News
Tornado Cash Developer Alexey Pertsev Granted Supervised Release from Prison
Hassan Shittu
Hassan Shittu
2025-02-07 00:30:51
Blockchain News
Deribit Exits Russian Market Due to EU Sanctions: Report
Tanzeel Akhtar
Tanzeel Akhtar
2025-02-06 23:54:56
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors