Robinhood has agreed to a $9 million settlement to bring an end to a lawsuit filed by individuals who received “refer-a-friend” marketing messages from the popular trading platform. The proposed settlement was at the Washington Western District Court last week, marking a resolution to a legal battle that has spanned over two years.

Plaintiffs Cooper Moore and Andrew Gillette, along with defendant Robinhood Financial LLC, reached a class action settlement to address all claims in the lawsuit related to text messages regarding the Robinhood referral program. The proposed settlement establishes a $9,000,000 Settlement Fund for the Settlement Class, consisting of individuals who received the marketing messages and were Washington residents between August 9, 2017, and the date of Preliminary Approval.

The Settlement Class is broadly defined as individuals or entities who received a Robinhood referral program text message during the specified timeframe, excluding those who had previously given clear and affirmative consent to receive such messages.

Robinhood Settles Refer-a-Friend Lawsuit for $9 Million – New Update.

The settlement comes after an extended period of litigation, during which the parties engaged in extensive legal proceedings, including motions and class certification discovery. The plaintiffs now seek preliminary approval of the settlement, conditional certification of the Settlement Class, notification to potential class members, and a scheduled Final Approval Hearing.

Plaintiffs’ Counsel estimates that approximately one million consumers with phone numbers containing Washington area codes received Robinhood refer-a-friend text messages. The Settlement Fund will be to compensate the Settlement Class, cover settlement administration costs, and pay court-approved amounts for attorneys’ fees, costs, expenses, and service awards for the Class Representatives.

It is worth noting that the lawsuit, initiated by Cooper Moore and Andrew Gillette, revolves around the dissatisfaction of the plaintiffs, who claim they never consented to receive messages as part of Robinhood’s refer-a-friend campaign. The plaintiffs argue that Robinhood actively supports and facilitates its users in sending these messages, pointing to various forms of assistance, encouragement, and technological enablement provided by the platform.

However, the Court is now going to review and potentially approve the proposed settlement, bringing an end to this chapter of legal disputes for Robinhood.

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