Federal Judge Refuses to Block Massachusetts Fiduciary Rule in Robinhood Case
From the Desk of Jim Eccleston at Eccleston Law LLC:
Robinhood’s attempt to stop Massachusetts securities regulators from enforcing a new fiduciary rule that may bar Robinhood from the commonwealth was unsuccessful. In an eight-page ruling, Superior Court Judge Kenneth Salinger denied Robinhood’s request for an injunction against the new rule stating that “Robinhood will suffer no irreparable harm” if enforcement continues.
The ruling comes after Massachusetts Secretary of State William Galvin filed suit against Robinhood for allegedly manipulating novice investors and enticing frequent trading via the application’s design. Nevertheless, Judge Salinger invited further argument from Robinhood’s legal representatives.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
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