A huge technical gaffe on the company’s part resulted in several of its users getting locked out from their accounts and suffering damages of over $5 million, an amount which the company is now trying to compensate for by offering $75 goodwill credit and various other services
Robinhood, a renowned forex trading app, has been caught in the midst of a lot of issues lately, including the much talked about legal fallout that resulted from 10 million users being locked out during a time when the stock market was facing intense volatility.
This move, whether calculated or unintentional, resulted in many of those users suffering irrecoverable damages, with at least 1 million users incurring losses of over $5 million.
It wasn’t long before Robinhood found itself embroiled in an ugly lawsuit, with the attorneys demanding the Judge to prevent the company from sending ‘misleading communications’ to the affected parties.
It is being held that the advocates are leaving no stone unturned in gaining a class action status through this case, the proceedings of which are taking place in the Federal Court in Florida.
The new allegations filed against the company reported that it was attempting to mislead its users by offering “75 goodwill credit’, to perhaps compensate them for their losses.
Other allegations suggest that the company was offering free premium services of up to three months, worth around $5 a month. The attorneys have blatantly criticized this move, calling it an attempt to sway customers away from their legal rights by confusing and tricking them with such promotional tactics.
One of the attorneys, Michael S. Taaffe was quick to point out the misgivings behind Robinhood’s desperate attempts to lure its users, calling them a ‘calculated attempt’.
“We view this type of activity by Robinhood as a calculated attempt to wipe out users’ class action claims without informing the users that they can instead participate in the class action should they so choose” he stated.
He also alerted the users to refrain from signing up for anything that the company offers, which may dissuade them from taking part in the class action.
Those who remain steadfast in their action against the company’s misdoings, have formed a social media account named ‘Robinhood Class Action’ to publicly demonstrate any unsolicited attempts by the company to win them over. With over 8000 followers as of now, the users have shared various images and details showing the letter they received from the company.
Besides, many of the users took to their private social media handles to express their concerns and displeasure over the company’s extremely contemptible services and technical issues. A majority of them have even complained about being having to wait for long hours to get technical help from the Customer Service department, due to difficulties in accessing their accounts.
The Chief Executive Officer of the Company, however, has shifted the blame on the highly volatile stock market conditions, along with unrelenting requests by new customers for accounts, which he believes exerted undue pressure on the company’s technical infrastructure.