If you traded stocks on Robinhood between September 1, 2016 and September 1, 2018, you may be eligible for a payment from a $2,000,000 class action settlement.
The average estimated payout is about $17.60, but your actual amount depends on your trading activity and calculated losses.
What happened?
This class action alleges that Robinhood’s order routing practices may have resulted in some users receiving less favorable trade prices than the national best bid or offer.
Specifically, plaintiffs claimed Robinhood:
- Routed certain trades in ways that may have led to worse execution prices
- Misrepresented aspects of its “payment for order flow” system
- Caused eligible users to potentially lose money on qualifying trades
Who is eligible?
You may be included in the settlement if you are a U.S. customer of:
- Robinhood Financial LLC
- Robinhood Securities LLC
- Robinhood Markets Inc.
AND you placed qualifying equity trades between September 1, 2016 – September 1, 2018
A “qualifying trade” includes:
- A market order to buy equities executed above the National Best Offer, or
- A market order to sell equities executed below the National Best Bid AND:
- Your total “price difference” across qualifying trades was greater than $5
How much money can you get?
- Total settlement fund: $2,000,000
- Estimated average payout: ~$17.60
- Payments are pro rata, meaning:
- Your payout depends on your eligible trading impact
- Final amounts may increase or decrease depending on total claims
After deductions for administration costs and expenses, the remaining fund is distributed to eligible claimants.
Your options
| Option | What It Means | Deadline |
|---|---|---|
| Do Nothing | If you have an active Robinhood account in good standing, you may automatically receive a pro rata payment. Closed accounts receive nothing unless they file a claim. | — |
| Submit a Claim Form | Required if your account is closed OR if you want payment via ACH instead of default credit | July 13, 2026 |
| Exclude Yourself | You get no money but keep your right to sue separately | March 30, 2026 |
| Object | Stay in the settlement but tell the Court why you disagree | March 30, 2026 |
| Attend Hearing | Speak at the court hearing about fairness | May 5, 2026 |
How to file a claim?
To submit a claim:
- Go to the official settlement claim form
- Enter your Class Member ID (from your notice email/letter)
- Confirm your eligibility details
- Choose your payout method:
- ACH transfer (if applicable)
- Or default distribution (for active accounts)
Important notes:
- Active Robinhood accounts may receive payments automatically
- Closed accounts must file a claim to receive anything
- All claims require your Class Member ID
