Robinhood Settles With Vermont Regulators Over Outages

Posted on March 21st, 2022 at 1:22 PM
Robinhood Settles With Vermont Regulators Over Outages

From the Desk of Jim Eccleston at Eccleston Law:

Robinhood Markets Inc. has agreed to a $640,000 settlement with Vermont regulators over recent outages on Robinhood’s trading platform as well as inadequate supervision of accounts.


Robinhood continues to face regulatory scrutiny relating to outages on its trading platform in March 2020, when volatility skyrocketed at the beginning of the pandemic. According to a statement from the Vermont Department of Financial Regulation, at least 40 customers across the state complained to the regulator or Robinhood.


Vermont regulators additionally found that Robinhood’s automated process for approving customer applications failed to accurately determine whether clients should be permitted to engage in advanced options and margin trading. Robinhood’s stock has fallen nearly 64% since the firm’s initial public offering (IPO) in July 2021.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, stocks, robinhood

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

July 1, 2025
State Regulators Fine Five Major Broker-Dealers Nearly $10 Million for Excessive Commission Charges

A coalition of state securities regulators has ordered five broker-dealers — including Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade — to pay almost $9.9 million in penalties for overcharging customers on small-value trades.

June 30, 2025
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest.

 

June 27, 2025
FINRA Sanctions Advisor for Accepting $1 Million Inheritance from Client Without Firm Approval

FINRA has fined and suspended veteran advisor Kenneth J. Malm for accepting a $1 million inheritance from a client without receiving the necessary firm approval.