Robinhood Class Action Lawsuit Over Violations of Washington’s CEMA
According to a new class action lawsuit, online investing company Robinhood has been bombarding Washington residents with marketing text messages in violation of the law.
Cooper Moore et al., v. Robinhood Financial LLC
Cooper Moore filed a class action lawsuit against Robinhood Financial LLC in a federal court in California on Tuesday, alleging violations of Washington’s Consumer Electronic Mail Act (CEMA).
Moore reports that the online investment brokerage company established a referral scheme named “Refer a Friend” to promote its products and services. The company supposedly rewards customers for successful referrals with free stock.
Once the user’s contact joins Robinhood and links his or her bank account, both the referring user and the referred contact receive reward stock.
Moore claims that while he was a resident of Washington, Robinhood started or aided in sending him a refer-a-friend marketing text message.
Robinhood’s Alleged Violation of CEMA
He claims the text message violated CEMA, which prohibits the delivery of an electronic commercial text message to a telephone number issued to a Washington citizen for a cellular telephone or pager service.
Moore asserts that Robinhood’s mobile application simplifies the process of referring friends by allowing users to tap a few items in the app, where it then invites friends via the contacts.
Refer-a-friend is an extremely effective way of mass marketing. According to the class action lawsuit, Robinhood accomplishes targeted, fast, and extensive brand advertising at a relatively low cost.
Moore’s Call to Arms
Moore states that he is filing the class action lawsuit on behalf of all Washington residents who received illegal spam texts from Robinhood.
He is requesting an injunction to prohibit the claimed behavior, as well as $500 in damages and trouble for each illegal SMS sent to Class members, as well as attorneys’ fees and costs.
He estimates total damages at more than $5 million.
In July, investors also submitted a class action lawsuit against Robinhood, alleging that the company defrauded them of $10 billion by denying them access to volatile stocks like GameStop earlier this year.
According to the lawsuit, the financial services company failed to adequately finance its business or apply proper risk controls, resulting in trading limits and investors’ loss.
Editor’s Note on Robinhood CEMA Class Action Lawsuit 2021:
This article is written to inform you of the class action lawsuit filed against Robinhood over violations of CEMA.
Case Name & No.: Cooper Moore et al., v. Robinhood Financial LLC, Case No. 3:21-cv-06117-JCS
Jurisdiction: U.S. District Court Northern District of California
Products/Services: Illegal commercial text messages
Allegations: Robinhood allegedly spammed Washington residents with marketing messages, a violation of the state’s CEMA law
Have you received similar text messages stated in the article? Tell us by clicking the “Contact Us” button below!