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Galvin’s office says popular investing app Robinhood violates state securities rules
A complaint alleges that the online brokerage values trade volume over what’s best for customers. The company disputes the allegations.
By Andy Rosen Globe Staff,Updated December 16, 2020, 10:22 a.m.
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Gabby Jones/Bloomberg
Massachusetts regulators on Wednesday accused the popular online investing platform Robinhood of violating state securities laws, claiming in an administrative complaint that the app-based service treats personal finance as a game to attract young and inexperienced consumers.
The complaint, filed by the office of Secretary of State William Galvin, also says the Silicon Valley company has failed to shore up its digital infrastructure amid its runaway growth, resulting in several outages that limited customers’ ability to trade during periods of major stock market volatility. ....

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