Robinhood hacking sufferer sues buying and selling platform over safety

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By Sophie Alexander


A California man sued Robinhood Markets Inc. after his account was hacked, claiming the trading platform aimed toward millennials didn’t do sufficient to guard clients’ delicate info.

Siddharth Mehta stated in a complaint offered by his lawyer that his account was looted of “tens of hundreds of {dollars}” in July. He’s searching for to symbolize all different hacking victims within the proposed class motion lawsuit. The criticism wasn’t instantly out there in public filings on Santa Clara County court docket’s website.

Mehta is one among virtually 2,000 Robinhood customers whose accounts have been compromised by cyber criminals final yr, in line with an inner overview on the firm in October 2020.

“Robinhood’s clients collectively misplaced tens of millions of {dollars},” Mehta stated within the criticism. “Robinhood uncared for to tell clients of the unauthorized exercise for months. Solely after experiences have been leaked by nameless sources to information retailers did Robinhood disclose {that a} widespread breach had occurred.”

Mehta didn’t instantly discover his account had been damaged into, in line with the criticism. His lawyer, Kevin Osborne, accomplice at Erickson Kramer Osborne, stated Mehta wasn’t refunded the cash he misplaced.

“Robinhood behaved prefer it was only a tech begin up — working quick, breaking stuff, and rising quicker than its techniques might deal with,” Osborne stated in an emailed assertion. “However it’s not only a begin up, its a monetary establishment and it has actual obligations. They’re dealing with folks’s financial savings.”

Robinhood declined to touch upon the lawsuit.

The net brokerage that permits customers to purchase fractions of shares to make buying and selling extra inexpensive exploded in reputation final yr, including tens of millions of customers.

The case is Mehta v. Robinhood Monetary LLC, Superior Courtroom of the State of California, County of Santa Clara.

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