#Robinhood Agrees to $9 Million Settlement Over Unsolicited Text Messages.
A court in the state of Washington has given final approval for a $9 million settlement involving crypto and stock brokerage platform Robinhood over its role in sending unsolicited text messages to thousands of residents, according to a motion filed Tuesday.
The lawsuit, filed by plaintiffs Cooper Moore and Andrew Gillette, claimed that Robinhood's referral program violated the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act by sending promotional text messages without the recipient's consent.
Robinhoodâs referral program allowed existing users to send referral text messages to their contacts, inviting them to join the platform. When the recipients clicked on the referral link and signed up, both the referrer and the new user would receive a reward in the form of free stock.
The program aimed to leverage the existing user base to expand Robinhood's reach and user engagement.
The settlement resolves claims against Robinhood related to the referral program's text messages sent between August 2017 and February 2024.
