We explained everything you need to know about Robinhood Account Takeover Settlement. To resolve charges about failing to stop a data breach resulting in account takeovers, Robinhood agreed to a $20 million class action settlement. The claim deadline is near, so you better hurry. The potential payout per user would be up to $260.
Data breaches cause millions of dollars in penalties for companies, as we saw in the Snapchat privacy settlement, T-Mobile data breach settlement, Equifax data breach settlement, Interserve settlement, Google location tracking lawsuit settlement, and Tiktok data privacy settlement. When compared to other settlements, the total amount for the Robinhood Account Takeover Settlement is less. However, in this instance, the pay per person differs.
Table of Contents
Robinhood Account Takeover Settlement 2022
A lawsuit has been filed against the investment app Robinhood due to claims that the service’s carelessness allowed users’ private information to be exposed. This mistake led to the Robinhood account takeover by hackers. A class action lawsuit claims that the stock trading software lacks “almost universal security measures.” According to court documents, 400,000 users claim that hacks have affected their Robinhood accounts. In August, the multimillion-dollar contract obtained preliminary clearance.
Siddharth Mehta, Kevin Qian, Michael Furtado, and other Robinhood users who asserted their accounts were compromised filed a class action lawsuit against Robinhood on their behalf in February 2021 with the San Francisco law firm Erickson, Kramer, and Osborne.
According to a lawsuit, Robinhood’s trading platform did not employ sufficient security measures, leaving customer accounts open to account takeovers. According to the lawsuit filed by the plaintiffs, numerous Robinhood accounts were actually hijacked by unauthorized individuals.
Robinhood “employed poor security methods and lacked security protections used by other broker-dealer online systems,” according to the motion for settlement submitted on July 1 in the US District Court for the Northern District of California, which resulted in numerous data breaches.
Customers of Robinhood are said to have lost millions due to the data breach. Despite stating that it would refund all losses brought by unlawful behavior, Robinhood allegedly turned down some reimbursement claims without justification.
Although Robinhood hasn’t admitted any wrongdoing, the claims will be resolved through a $20 million class action settlement. Robinhood has set aside up to $500,000 for compensation to class members. Class members may be eligible for a monetary reimbursement under the terms of the Robinhood settlement, depending on what happened after the data breach.
In order to avoid further data breaches, Robinhood has also agreed to implement security measures. These adjustments include real-time phone help, proactive monitoring, password screening, two-factor authentication, and client awareness campaigns.
Robinhood Account Takeover Settlement per person
The settlement offers a maximum cash award of to class members of $260:
- For out-of-pocket costs associated with the data breach, such as communication costs, unreimbursed account losses, bank fees, and more, class members are eligible to collect up to $100.
- Class members are eligible for additional payments of up to $100 for identity theft protection or credit monitoring and up to $60 for missed time.
Customers who had their accounts accessed by unauthorized persons due to the data breach but who had already been rejected compensation for their losses might be eligible for additional reimbursement.
Robinhood Account Takeover Settlement deadlines
- The exclusion and objection deadline is November 3, 2022.
- The Robinhood data breach compensation final clearance hearing is scheduled for May 16, 2023.
- By January 17, 2023, class members must submit a legitimate claim form to be eligible for settlement funds.
How to join the Robinhood class action lawsuit?
Who is eligible? The settlement is for people who, between January 1, 2020, and April 27, 2022, had an illegal access incident on their Robinhood account that were either reported to Robinhood by consumers or reported to customers by Robinhood.
On September 13, the day the settlement website becomes online, the settlement notice will be sent out officially. You could file a claim if you get a notice from the Robinhood Account Takeover Settlement.
Robinhood data breach claim form
Visit the Submit Claim page and follow the directions to file the Robinhood data breach claim form. You can also send a printed copy of a Claim Form by printing one from the Settlement Website or asking the Settlement Administrator to send you one by U.S. mail. Hard copies of Claim Forms may be mailed to or uploaded to the Settlement Website at:
Mehta v. Robinhood Settlement
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Your Claim Form must be submitted via the Settlement Website or sent by mail no later than January 17, 2023, for it to be considered timely and legally acceptable.
Your claim is being submitted under penalty of perjury. You are also hurting other eligible class members by making a false claim. Please check the Settlement Administrator’s website’s FAQ section if you have any questions about whether you fit the requirements.
Robinhood Account Takeover Settlement payout date
It has been decided to have the hearing to determine final approval on May 16, 2023. After that, class members typically receive reimbursement, though there may be delays because of appeals.
How to get more information about the Robinhood Account Takeover Settlement?
On the Important Documents tab of the Settlement Website, you may find important documents and more details about the Settlement. You can reach the Settlement Administrator by phone toll-free at 1-844-511-1424 or by email at firstname.lastname@example.org.
Data breaches and hacks are today’s biggest problems. Check out the latest data breaches and hacks before we continue: CHI Health data breach, Facebook data breach, Uber security data breach, American Airlines data breach, Medibank cyber attack, and Binance hack.
What is Robinhood?
Through a smartphone app launched in March 2015, Robinhood Markets, Inc., an American financial services company with its main office in Menlo Park, California, enables commission-free trading of stocks, exchange-traded funds, and cryptocurrencies.
Outcomes of data breaches: Equifax & T-Mobile
The combined value of these two cases is $775 million.
Equifax data breach settlement
The credit reporting firm Equifax acknowledged on September 7, 2017, that one of its computer networks had had a data leak that had exposed the personal information of 143 million clients, which eventually rose to 147 million. These records included information about the customers’ names, residences, dates of birth, Social Security numbers, and credit card numbers, all of which may be exploited for fraud and identity theft.
Equifax agreed to establish a fund to provide customers with free credit monitoring, identity theft protection, and cash compensation of up to $20,000 per to people harmed by the event, per the deal’s conditions. Additionally, the company must pay court fees and government fines.
Take a closer look at how data breaches effects companies: Equifax Data breach settlement
The cybersecurity vulnerability was first disclosed by T-Mobile and was made public on August 16, 2021. According to reports, almost 77 million consumers’ personally identifiable information was stolen due to the T-Mobile data breach. This contained database data such as addresses, dates of birth, social security numbers, driver’s license numbers, unique IMEIs and identification codes for client phones, etc.
If granted, the $350 million T-Mobile deal will represent US history’s second-largest payment for a data breach.
Take a closer look at how data breaches effects companies: T-Mobile Data Breach Settlement