Robinhood $2M Order Routing Class Action Settlement

U.S. customers of Robinhood Financial LLC, Robinhood Securities LLC or Robinhood Markets Inc. who placed certain equity trades between Sept. 1, 2016, and Sept. 1, 2018, may be eligible to claim an average of $17.60 from a class action settlement.

Robinhood agreed to pay $2 million to settle a class action lawsuit alleging it misrepresented its receipt of “payment for order flow” and provided inferior “price improvement” on certain trades. The plaintiffs claimed Robinhood’s order-routing practices may have caused customers to receive less favorable trade prices than the national best bid or offer, particularly for those whose aggregate loss exceeded $5 during the settlement period.

Who are the class members?

Individuals must be United States customers of Robinhood Financial LLC, Robinhood Securities LLC or Robinhood Markets Inc. who placed at least one qualifying trade between Sept. 1, 2016, and Sept. 1, 2018. This includes those with active Robinhood accounts in good standing and those who closed their Robinhood accounts.

A qualifying trade is defined as:

• One or more market orders to purchase equities (excluding stop orders) routed during market hours and executed at a price higher than the National Best Offer at the time of routing OR
• One or more market orders to sell equities (excluding stop orders) routed during market hours and executed at a price lower than the national best bid at the time of routing

Additionally, the aggregate difference between the execution price and the national best bid/offer, counting only qualifying trades, must be greater than $5.

How much can class members get?

The total settlement fund is $2,000,000. After deducting taxes, administrative costs and attorneys’ expenses, the settlement administrator will distribute the remaining funds to eligible class members.

The settlement administrator will distribute the funds on a pro rata basis, meaning each authorized claimant will receive an equal percentage of their total calculated damages.

Based on estimates, class members will receive approximately 16.5% of their calculated damages. The average payment is estimated to be $17.60 per class member, but the actual amount may vary depending on the total number of valid claims and each claimant’s calculated damages.

The settlement administrator may adjust payments depending on the number of claims submitted and the final net settlement fund available.

How to claim a class action payment

Class members with active Robinhood accounts in good standing will automatically receive their payment as a credit to their account. However, if they prefer to receive payment via ACH transfer to a different financial institution, they must submit a claim form.

Class members whose Robinhood accounts are closed must submit a claim form to receive payment. After final approval, they will receive an email prompting them to provide their financial account information for ACH transfer.

To file a claim online, class members can submit the online claim form or download, print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: In re Robinhood Order Flow, Kroll Settlement Administration LLC, PO Box 5324, New York, NY 10150-5324

Is proof or documentation required to submit a claim?

All class members must provide the class member ID located on the settlement notice they received.

Payout options

• Credit to an active Robinhood account (default for active accounts)
• ACH transfer

$2 million settlement fund breakdown

The $2,000,000 settlement fund includes:

• Settlement administration costs: Up to $70,000
• Attorneys’ expenses: Up to $920,000 (no separate attorneys’ fee request)
• Service award to lead plaintiff: Up to $10,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Exclusion deadline: March 30, 2026
• Fairness hearing: May 5, 2026
• Deadline to file a claim: July 13, 2026

When is the Robinhood order flow settlement payout date?

The settlement administrator will issue payments 30 days after the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that Robinhood misrepresented its receipt of “payment for order flow” and that its order-routing practices resulted in some customers receiving less favorable trade prices.

Robinhood denied all allegations but agreed to settle to avoid the expense and uncertainty of continued litigation.

Sources

1. Class notice
2. Claim form
3. Stipulation of settlement
4. Settlement FAQ