Family set to sue Robinhood over childs suicid …
When his account flashed red, Kearns tried to email the companys consumer service three times to ask if his negative balance was accurate. In a special interview with “CBS This Morning”, Kearns mother and dad said the company was responsible for their kids death.
The stock-trading app Robinhood was bought to pay almost $70 million Tuesday by financial regulators for deceiving its consumers, causing them to lose countless dollars.
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Following the CBS examination, Robinhood added more consumer support features.In settling with FINRA on Wednesday, the company neither admitted nor denied the charges, but granted the entry of FINRAs findings.Robinhood stated in a statement to CBS News on Wednesday it “has actually invested greatly in enhancing platform stability, enhancing our educational resources, and constructing out our client support and legal and compliance teams. We are grateful to put this matter behind us and anticipate continuing to focus on our customers and equalizing finance for all.”As part of the general settlement with the business, the regulator purchased Robinhood to pay more than $12 million in restitution to Kearns and countless other consumers.
When his account flashed red, Kearns attempted to email the businesss consumer service three times to ask if his unfavorable balance was accurate. The regulator said Robinhood breached regulatory guidelines by offering consumers like Kearns “deceptive and incorrect details” that “concerned a variety of critical problems, including … how much money was in customers accounts … the risk of loss clients dealt with in particular alternatives deals, and whether clients dealt with margin calls. We are thankful to put this matter behind us and look forward to continuing to focus on our clients and democratizing financing for all.”As part of the general settlement with the company, the regulator bought Robinhood to pay more than $12 million in restitution to Kearns and thousands of other clients.
I miss him more than anything,” Dorothy Kearns stated.” The FINRA complaint particularly highlighted the Kearns case. The regulator stated Robinhood broke regulatory rules by offering clients like Kearns “false and misleading details” that “worried a variety of crucial problems, including … how much cash was in clients accounts … the danger of loss customers dealt with in certain alternatives deals, and whether customers dealt with margin calls.
“This action sends a clear message– all FINRA member firms, regardless of their size or organization model, must comply with the rules that govern the brokerage market, guidelines which are designed to safeguard financiers and the integrity of our markets,” stated FINRAs Head of Enforcement Jessica Hopper in a declaration. “Compliance with these rules is not optional and can not be compromised for the sake of development or a willingness to break things and fix them later on.”The company was fined $65 million in 2020 by the Securities and Exchange Commission, a federal firm, for misleading its stock market customers about how the business makes its profits from their trades. In 2019, FINRA fined the business $1.25 million for routing customers orders through four brokerages paying it to do so without making sure orders were executed for the finest possible price.
