Robinhood - Application of Fiduciary Duties Against Broker Dealers
On December 17, 2020, Robinhood, a popular financial technology company favored by younger investors, agreed to pay $65 million to settle charges filed by the Securities and Exchange Commission (“SEC”). These charges were a result of their failure to disclose that they sold their clients' orders for securities to high-speed trading firms and to fulfill their duty to seek the best available terms for customer orders. Just one day prior, Massachusetts regulators filed a separate complaint...