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Civil Plaintiff

Robinhood Agrees to Pay $70 Million in a Settlement With a Financial Industry Regulator

A financial industry regulator Wednesday ordered Robinhood Financial to pay nearly $70 million in fines and restitution to customers harmed by regulatory lapses and inaccurate information.

Robinhood will pay $57 million in fines to the Financial Industry Regulatory Authority (FINRA), a self-regulatory agency for brokerage firms, and $12.6 million in damages to thousands of customers. It is the largest penalty ever levied by FINRA, the regulator said.

“This action sends a clear message—all FINRA member firms, regardless of their size or business model, must comply with the rules that govern the brokerage industry, rules which are designed to protect investors and the integrity of our markets,” said Jessica Hopper, executive vice president and head of enforcement for FINRA.

Read the source article at The Hill

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