Online broker Robinhood will pay $9.9 million to a group of users who filed a lawsuit against the company over persistent application glitches, Law360 has reported.
The class action lawsuit was filed by 150,000 users of the platform who claim to have lost $20.4 million.
The parties have reached a settlement prior to trial.
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According to the statement:
"The settlement provides a strong recovery with tangible and immediate compensation to injured class members."
The claims against Robinhood relate to the March 2, 2020 incident. On that day, the platform showed the largest gain in history at the time, however, it did not function properly until the next trading session.
A similar failure was recorded on March 9, 2020.
By mid-year, numerous lawsuits against Robinhood had been consolidated into one in a California federal court.