In early 2021, EKO Law filed a class action on behalf of Robinhood customers who were victims of account security breaches. The case claims Robinhood failed to take industry-standard measures to safeguard customer information, then refused to reimburse customers’ stolen funds despite promises to do so.
Before answering the claims, Robinhood moved to have the case dismissed. On September 8, 2021, Magistrate Judge Susan Van Keulen rejected almost all of Robinhood’s arguments, ruling the plaintiffs’ claims for negligence, breach of contract, and violations of various consumer protection and privacy laws can proceed.
As reported by Bloomberg,
Robinhood ... must face claims they violated the California Consumer Privacy Act after a California federal judge found the plaintiffs had adequately alleged that a breach occurred. The stock trading app company must also face claims it acted negligently and violated users’ constitutional right to privacy by failing to guard against the breach,
This was the second time the District Court has refused Robinhood's request to have the case dismissed. In May 2021, the Court largely denied a similar motion, but left open the possibility that some claims could be dismissed. The Court's recent ruling confirms Robinhood will now have to face most of those claims.
The case will now proceed to discovery, the fact-collecting stage of a lawsuit.
If you have information regarding the case or if you are a victim of a data breach, connect with EKO Law.