Robinhood Reaches $65 Million Settlement with SEC Over Misleading Communication
Last Updated: 17 December 2020
Robinhood, the popular stock trading app, has been under significant scrutiny this week following some of its marketing and technical practices. While the company still has a great deal to answer for, it has managed to ward off a case from the Securities and Exchange Commission (SEC).
False Advertising and Hidden Charges
Robinhood and the SEC have reached a $65 million settlement over misleading communication with its millennial clientele, per an official press release. The SEC had accused Robinhood of misleading statements and omissions concerning its fee structure, leading many unsuspecting traders to sign up for its service.