Dealing with financial losses on an investment platform like Robinhood can be frustrating and confusing. If you’ve lost money on Robinhood due to an advisor’s misconduct, you may be wondering whether you can file a lawsuit.
So, can you file a lawsuit against Robinhood? In most cases, you cannot sue Robinhood, but you may be able to recover your losses through Financial Industry Regulatory Authority (FINRA) arbitration.
The FINRA arbitration process can be complex. If you’ve incurred losses on Robinhood due to an advisor’s misconduct, a Robinhood hacking and theft lawyer can help you file a claim and pursue compensation.
Can You File a Lawsuit Against Robinhood?
You can file a claim against Robinhood, but there’s a catch: Robinhood’s user agreement includes a mandatory arbitration clause.
This means that instead of taking your case to a traditional court, you will likely be required to resolve your dispute through FINRA arbitration—a private legal process for settling disputes with financial institutions.
A FINRA arbitration lawyer can evaluate your situation and determine whether you have a viable case against Robinhood.
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How Can I Get My Money Back From Robinhood?
Your ability to recover lost funds from Robinhood will depend on how the loss occurred. In cases involving account hacking or SIM swap fraud, Robinhood may argue that the user is responsible for securing their credentials.
However, if the platform failed to provide adequate security or respond appropriately, you may have grounds for a claim.
In many cases, Robinhood may deny responsibility or offer limited support. If that happens, legal intervention may be necessary. A securities fraud lawyer can help you file a formal demand and initiate arbitration.
How Much Will I Get From a Robinhood Settlement?
There’s no guarantee you’ll be able to recover your lost funds from Robinhood. If you do win a settlement, its value will depend on factors like:
- The size of your financial loss
- The strength of your legal claim
- Whether you filed an individual claim or joined a class action lawsuit
- Attorney fees and arbitration costs
When you file a claim as an individual, your compensation could include the amount you lost, interest or market damages, and, in rare cases, punitive damages. To maximize your chances of a fair payout, it’s crucial to work with an experienced attorney.
Our lawyers are nationwide leaders in investment fraud cases.
How Can an Investment Fraud Lawyer Help?
Investment fraud and brokerage negligence cases are highly technical. An experienced lawyer can help by:
- Reviewing your account history and loss documentation
- Determining whether Robinhood violated FINRA rules or SEC regulations
- Filing arbitration paperwork and handling communications
- Negotiating a fair settlement
- Representing you if your case proceeds to a hearing
If your Robinhood issue involves hacking, SIM swaps, or identity theft, a lawyer can also explore claims under data privacy laws or cybersecurity negligence.
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What if My Account Got Hacked?
Hackers frequently target Robinhood accounts. If your account was hacked and you reported it promptly, but Robinhood failed to secure your funds or take reasonable action, you may have a claim for negligence or breach of duty.
Common signs of a hacked account include missing funds, unexplained trades or transfers, or a locked account.
What if I Was the Victim of a SIM Swap?
SIM swap fraud occurs when a hacker tricks your phone carrier into transferring your number to a new SIM card. This lets them intercept two-factor authentication codes and gain access to your Robinhood account.
If you were the victim of a SIM swap and lost money through your Robinhood account, you may be able to pursue claims against:
- Robinhood, if they failed to implement security best practices or detect suspicious activity
- Your phone provider for allowing the fraudulent SIM transfer
A lawyer can help determine who’s responsible for your losses.
Common Types of Claims Against Robinhood
Users have filed a wide range of complaints against Robinhood over the years. The most common types of legal claims include:
- Outage-related losses: These occur when Robinhood’s platform crashes during critical market hours, preventing users from executing trades and causing significant losses.
- Failure to execute trades: Some users experience delays, canceled orders, or system glitches that prevent the timely execution of trades, leading to missed opportunities or unexpected losses.
- Unauthorized account access: In cases where hackers gain control of a user’s account, Robinhood may be held responsible if it fails to implement or maintain adequate security protocols.
- SIM swap and identity theft: Users who fall victim to SIM swapping may lose access to their accounts and funds if Robinhood’s authentication processes fail to detect suspicious activity.
- Misleading communications: This includes cases where Robinhood provides inaccurate information about securities, margin risks, or account features, leading users to make uninformed decisions.
- Improper restrictions: Robinhood has faced criticism for limiting trades on specific stocks (such as during the GameStop short squeeze), often without clear communication or justification.
Contact a Robinhood Hacking and Theft Lawyer
If you’ve suffered losses over $100,000 on Robinhood due to an advisor’s misconduct, you deserve to be compensated. A Robinhood hacking and investment theft lawyer from Meyer Wilson Werning can help you file a claim and recover what you’ve lost.
Schedule a free consultation to learn about how you can hold Robinhood accountable.
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