Robinhood Fails to Block Massachusetts Watchdogs' Case
Main page News, Fintech, US, Regulations

Massachusetts state regulators will move forward with enforcement action against Robinhood as the fintech broker failed to block their allegations in court, Reuters reports. According to Suffolk County Superior Court Judge, Kenneth Salinger, Robinhood can continue challenging in court the legality of the state's new fiduciary rule.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Salinger says the state’s securities division could still press its separate allegations against Robinhood’s alleged conduct even if the court had struck down the challenged regulation.

"If the court were to strike down the challenged regulation, the division would still be entitled to press its separate claims that Robinhood’s alleged conduct was nonetheless unethical or dishonest," Salinger

Robinhood Could Pay $26 Million Over March Outages: Report

As iHodl reported earlier, Massachusetts watchdogs filed a lawsuit against Robinhood accusing the millennial-focused investment app of "aggressive tactics to attract inexperienced investors." Massachusetts securities regulators say Robinhood is using gamification strategies "to manipulate customers" and often experiences technical issues.

The company is disagreed with the allegations by the Massachusetts Securities Division and plans "to defend the company vigorously," said a Robinhood spokesperson.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error