Robinhood Sued Over Issues Tied to 'Dark Pool' of Payments

The plaintiff seeks unspecified damages and restitution on behalf of himself and the class. Robinhood declined to comment on the complaint Friday.

Similar allegations have been made against Robinhood in recent months.

Earlier Legal Matters

In December, the Securities and Exchange Commission said Robinhood agreed to pay a $65 million civil penalty to settle allegations that it repeatedly failed to disclose its receipt of payments from trading firms for routing client orders to them, and also failing to satisfy its duty to seek the best reasonably available terms to execute customer orders.

This settlement came one day after William F. Galvin, Massachusetts' top securities regulator, accused Robinhood of violating state law by using overly "aggressive tactics to attract new, often inexperienced, investors" and "gamification to encourage and entice continuous and repetitive use" of its mobile application.

Earlier this month, another complaint seeking class action status was filed against Robinhood by Siddharth Mehta, a client of the company who allegedly "lost tens of thousands of dollars" after the company's platform was breached by a hacker as a result of what the plaintiff said was Robinhood's negligence.