Mazza v. Robinhood Markets, Inc.

What this case is about

Plaintiffs allege that Robinhood, the popular commission-free trading app, misled consumers about the nature of its brokerage services and how it makes money. The lawsuit claims that Robinhood marketed itself as a platform designed to benefit everyday retail investors while concealing that it profits by selling customers' trading orders to large financial firms, a practice known as payment for order flow. Plaintiffs contend this arrangement results in customers receiving worse trade prices than they would on other platforms, costing them money despite the promise of free trading. The proposed class consists of consumers who used Robinhood's brokerage services and traded securities during the relevant period, arguing they were deceived into believing they were getting a genuinely cost-free and investor-friendly trading experience.

What happens next

The case is in its earliest stage. The defendant has not yet responded. Class certification — the court's decision on whether the case can proceed as a class action — typically takes 12 to 24 months after filing.

Source: CourtListener docket entry. This summary was generated automatically and may not reflect subsequent filings.