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Robinhood Class Action Lawsuit - Data Breach

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Robinhood Paying $70 Million Penalty in Largest-Ever FINRA Fine

Millions of Customers Affected by November 2021 Hack

Earlier this month, one of the world’s largest online trading platforms was hacked. In a November 8, 2021 statement, Robinhood announced that millions of its customers had been affected by the data breach. According to the company, an unauthorized third party had obtained access to customers’ personal information in what they referred to as a  “data security incident.” 

Levin Law, P.A. continues to investigate this and other potential security failures by Robinhood Markets, Inc., or one of its subsidiaries Robinhood Financial LLC, Robinhood Securities, LLC, or Robinhood Crypto, LLC.

If you were notified by the company that an unauthorized third party obtained access to your personal information, please contact Levin Law immediately at (305) 402-9050 or via email at Affected Robinhood customers may be able to join a class-action lawsuit against the online trading platform.

2021 Data Breach

On November 8, 2021, Robinhood announced the data security incident through their blog. According to their website, the company experienced a data breach on November 3. At that time, an authorized third party obtained access to the personal information of millions of the online trading platform’s customers. 

During the breach, the hackers allegedly “socially engineered a customer support employee by phone” in order to obtain access to the company’s customer support systems. The unauthorized party was able to get a list of email addresses for approximately five million customers and the full names of another two million customers. Thousands of customers also had their phone numbers and text entries exposed.

Furthermore, the hack allegedly uncovered the additional personal information of approximately 310 customers. Other personal data included the name, date of birth, and zip code of the customers. A small set of customers had “extensive account details revealed.”

Pursuing Justice for Affected Customers

Levin Law continues to investigate this and other potential security failures by Robinhood and its subsidiaries. Our firm is dedicated to pursuing justice for affected customers. Contact Levin Law P.A. if you are interested in joining a class-action lawsuit against the online trading platforms regarding its continued security breaches.

Previous Robinhood Data Security Incident

A class-action lawsuit against Robinhood is currently pending in the United States District Court for the Northern District of California. The litigation stems from a 2020 data breach in which an unauthorized third party was allegedly able to gain access to the personal information of approximately 2,000 Robinhood customers.

Compromised accounts, according to the lawsuit, had their sensitive personal and financial information disclosed, allowing third-party hackers to remove funds from their accounts. Losses are reportedly in the millions for the thousands of customers affected by the security breach.

Suspected Security Failures

The class-action lawsuit resulting from the 2020 data breach alleges that Robinhood’s “failure to maintain proper industry-standard security measures” resulted in the data breach and subsequent losses suffered by thousands of customers. The suspected security breach led to some customers having their funds completely depleted.

Continued data breaches are a serious problem for online trading platforms whose users often carry a significant amount of digital assets, including cryptocurrency. Hackers will often use the information that they obtain during these security failures to carry out phishing expeditions and other attacks against the victims. 

Other Legal Troubles for Robinhood

Lawsuits related to data breaches are not the only legal trouble faced by the online trading behemoth. As we previously wrote about, earlier this year, Robinhood was ordered to pay a $70 million penalty in the largest-ever fine issued by the Financial Industry Regulatory Authority (FINRA).

Protecting Your Digital Assets

With the rise of digital assets and cryptocurrency investments, companies must do everything that they can to protect their customers’ personal information. In a matter of minutes, an unauthorized third party can remove funds from a person’s account due to a security failure. 

Protecting your cryptocurrency and digital assets is paramount, and companies must put in place adequate security measures, including multi-factor authentication processes. If a company’s data breach resulted in financial losses, including the loss of crypto assets, contact our office immediately to discuss your legal rights.

Contact Levin Law Today for a Free Case Evaluation

If you received notification that your personal information or account data was accessed during a data breach, you might be entitled to compensation. Contact Levin Law, P.A. to speak directly with founder and managing partner Brian Levin regarding your potential financial recovery. 

If you are a Robinhood customer and have been affected by a suspected security failure, call our office at (305) 402-9050 or email to discuss joining a class-action lawsuit based on the November 2021 data breach.

Most cases are handled on a contingency fee basis, meaning that clients are not obligated to pay Levin Law’s attorney fees unless money is recovered on their behalf.

About Levin Law

Levin Law is a premier national securities, cryptocurrency, and class action law firm.  Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries in excess of $150,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.

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