Robinhood Sued Over Unlawful Sharing of Sensitive Financial Data
Jamillah Dunn, a Robinhood Markets Inc. (NASDAQ: HOOD) client, filed a lawsuit in the California Northern District Court. She accuses the company of unlawfully disclosing consumers’ sensitive financial information—like securities holdings and stock portfolios—to unauthorized third parties without consent.
How the Data Sharing Works
Robinhood allegedly embeds invisible Google trackers on its website. These trackers capture search terms, including stock ticker symbols, along with identifiers and cookies that link data to specific users. Shared info includes full account numbers, names of securities in portfolios, current security prices, search history, and web activity.
Risks to Consumers
This practice lets advertisers like Google track financial details over time, estimating net worth and building demographic profiles for targeted ads. Sharing full account numbers raises risks of unauthorized account access, fraud, identity theft, and unauthorized transactions. Robinhood is accused of failing to protect data or disclose sharing practices. No class member authorized this in writing.
Legal Claims
The suit brings seven causes of action:
- Violation of the Electronic Communications Privacy Act (ECPA), 18 U.S.C. § 2511(1)
- Violation of the California Invasion of Privacy Act (CIPA), Cal. Pen. Code § 631 et seq.
- Negligence
- Breach of Implied Contract
- Violation of the California Consumer Privacy Act (CCPA)
- Intrusion Upon Seclusion
- Breach of Confidence
Relief Sought
Dunn seeks class certification with her as representative, a declaration of violations, an injunction to stop the practices, statutory damages, disgorgement of profits, costs, attorneys’ fees, and other court-deemed relief.
About Robinhood
Robinhood has a commission-free trading model. It provides an intuitive mobile app. The platform supports trading in stocks, ETFs, options, and cryptocurrencies without any commission fees. It offers unlimited commission-free trades on stocks, ETFs, options, and cryptocurrencies. It also offers fractional shares to invest in high-priced stocks. Recently, Robinhood entered Indonesia by acquiring local broker PT Buana Capital Sekuritas and crypto trader PT Pedagang Aset Kripto.
Wrapping Up
This case shows growing concerns over fintech data privacy. Potentially, it will force Robinhood to overhaul its tracking practices if the claims hold.
Register your company now and get featured on our homepage!
