On Wednesday, Robinhood reached a settlement with FINRA over a multitude of issues, agreeing to pay a fine of $57 million and restitution to customers of $12.6 million.
In the 122-page settlement document against Robinhood, FINRA explains that the company “has paid or intends to pay…a total of $8,853,506.68” to customers who lost money because of misrepresentations about options spread transactions and outages between January 2018 and December 2020.
Another $3.7 million is for other customers who suffered losses from options issues and margin call warnings.
This restitution, FINRA noted, “does not preclude customers from pursuing their own actions to obtain restitution or other remedies,” meaning customers could still sue or arbitrate if they want to.
Payments made to customers must include a letter explaining why, FINRA wrote.
The site outages in particular – which occurred between 2018 and 2020 – got a lot of public attention, as customers angrily tweeted about not being able to execute trades as the market moved.
The people getting restitution are listed in an attachment (A) at the end of the document, and Robinhood has 120 days to try to pay them.
The document lists 3,332 customers who will be getting more than $3.7 million in restitution, with amounts ranging from just a few dollars to $147,963.20 for a costly error that happened on Nov. 13, 2020.
As for the rest of the $8.9 million of restitution, it’s still unclear how Robinhood will find and compensate those individuals.
Yahoo Finance has inquired and will update the story.
Ethan Wolff-Mann is a writer at Yahoo Finance focusing on consumer issues, personal finance, retail, airlines, and more. Follow him on Twitter @ewolffmann.
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