NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Robinhood Markets, Inc. (NasdaqGS: HOOD).
In December 2020, the U.S. Securities and Exchange Commission fined the Company’s predecessor, Robinhood Financial LLC, $65 million for allegedly failing to disclose its use of payment for order flow to customers between 2015 and late 2018. Soon after, users of Robinhood Financial sued it for, among other things, allegedly misleading and luring unsuspecting consumers to execute inferior market trades on the platform under the guise of “commission free” trading, while in fact the Company effectively charged backdoor commission fees to its clients’ orders via the use of Payment For Order Flow (“PFOF”). Following the Company’s July 2021 Initial Public Offering, it was added to the lawsuit as a defendant. Recently, the Court presiding over the case denied the defendants’ motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Robinhood’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Robinhood shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://ksfcounsel.com/cases/nasdaqgs-hood-2/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit www.ksfcounsel.com.
