What Is the Robinhood Order Flow Settlement?
A $2,000,000 class action settlement has been reached in In re Robinhood Order Flow Litigation, Case No. 4:20-cv-09328-YGR, pending in the United States District Court for the Northern District of California, Oakland Division. The case was brought against Robinhood Financial LLC, Robinhood Securities, LLC, and Robinhood Markets, Inc. by Lead Plaintiff Ji Kwon.
The lawsuit alleged that Robinhood made misrepresentations relating to its receipt of Payment for Order Flow (PFOF) from certain entities to which it routed customer orders to purchase and sell equities, and that those payment arrangements resulted in inferior price execution — meaning customers received worse prices on their trades than they should have. Robinhood denies all allegations of wrongdoing.
Who Is Eligible?
You may be a Settlement Class Member if you were a United States customer of Robinhood Financial LLC, Robinhood Securities, LLC, and/or Robinhood Markets, Inc. who, between September 1, 2016 and September 1, 2018, placed qualifying trades where your execution price was worse than the National Best Bid or Offer, and your aggregate price difference across qualifying trades exceeded $5.00.
How Much Can You Receive?
The estimated average payment is approximately $17.60 per eligible claimant, after deduction of taxes, notice and administration costs, and attorneys' expenses. Your actual payment will be a pro rata share of the Net Settlement Fund based on your individual qualifying trade losses relative to all approved claims. Class Counsel is not seeking attorneys' fees — only reimbursement of litigation expenses not to exceed $920,000.
Do You Need to File a Claim?
It depends on your account status. If you are a Settlement Class Member with an active Robinhood account in good standing, you will automatically receive your pro rata share deposited into your Robinhood account — no claim form required. However, if you want your payment sent to a different financial institution via ACH transfer, you must submit a claim form.
If you are a Settlement Class Member who does not have an active Robinhood account in good standing, you must submit a Proof of Claim by the deadline to receive any payment. Failing to file means you forfeit your share and still release your legal claims against Robinhood.
Important Dates
The claim form deadline is July 13, 2026 (or 60 days after entry of a Final Approval Order, whichever is later). The exclusion and objection deadlines were March 30, 2026. The Settlement Hearing was held on May 5, 2026. A Final Approval Order has been posted to the settlement website, indicating the court has approved the settlement.
About the Case
This action alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The case involved extensive litigation including multiple motions to dismiss, motions to deny class certification, a motion for judgment on the pleadings, and multiple motions for class certification before the parties reached this settlement. The settlement was reached to avoid the uncertainty, expense, and delay of continued litigation.
Frequently Asked Questions
Q: I still have a Robinhood account. Do I need to do anything?
A: If your account is active and in good standing, you will automatically receive your payment in your Robinhood account. You only need to file a claim if you want the payment sent elsewhere via ACH transfer.
Q: I closed my Robinhood account. Can I still get paid?
A: Yes, but you must submit a Proof of Claim form by July 13, 2026. Without filing, you will not receive any payment and will still release your legal claims.
Q: How do I know if my trades qualify?
A: Qualifying trades are market orders (excluding stop orders) to buy equities executed above the National Best Offer, or market orders to sell equities executed below the National Best Bid, during market hours between September 1, 2016 and September 1, 2018, with an aggregate price difference greater than $5.00. Contact the Claims Administrator at 1-833-754-8881 if you are unsure.
Q: Why is the settlement only $2 million?
A: The parties disagreed significantly on liability and damages. Plaintiff's counsel determined that a guaranteed $2 million recovery now was preferable to the risk of no recovery after years of additional litigation, trial, and potential appeals. Notably, Class Counsel is forgoing attorney fees entirely and only seeking expense reimbursement.
Q: When will I receive my payment?
A: Authorized Claimants will receive their payment approximately 30 days after the Settlement is finally approved and any appeals process is complete. The Final Approval Order has been posted to the settlement website.