In the Matter of Robinhood Financial, LLC, Securities and Exchange Commission Administrative Proceeding File No. 3-20171 (the “Cease-And-Desist Proceeding”)

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Individuals and entities who traded with Robinhood Financial, LLC from July 1, 2016 through June 30, 2019, and were harmed as a result of the conduct described in the Cease-and-Desist Proceeding referenced below, may be eligible for a distribution payment from the Fair Fund (the "Fair Fund"). Eligible investors will be identified, and distribution payments calculated, based on the records obtained by the Securities and Exchange Commission (“SEC”) staff during the investigation of this matter and otherwise.

The information contained on this website is a summary of the information presented in more detail in, among other things, the Investor Notice, and the Approved Plan of Distribution, all of which you can review through the “Important Documents” tab on this website.

You should visit this website often to get the most up-to-date information on the Fair Fund.

Overview

The Cease-and-Desist Proceeding

On December 17, 2020, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and A Cease-and-Desist Order (“Robinhood Order”)  against Robinhood, finding that the Respondent violated Sections 17(a)(2) and 17(a)(3) of the Securities Act, and Section 17(a) of the Exchange Act and Rule 17a-4 thereunder.  The matter involves material misrepresentations and omissions by Robinhood relating to its revenue sources, specifically its receipt of payments from certain principal trading firms, also known as electronic market makers, for routing Robinhood customer orders to them, and relating to certain statements about the execution quality Robinhood achieved for its customers’ orders, and Robinhood’s failure to satisfy its duty of best execution for those orders. 

The Robinhood Financial Fair Fund, the Tax Administrator, and the Fund Administrator

The Robinhood Order required Robinhood to pay a civil money penalty of $65,000,000.00, and created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty could be distributed to harmed investors (the “Robinhood Fair Fund” or “Fair Fund”).  The Fair Fund includes the $65,000,000.00 paid by the Respondent.  The Fair Fund has been deposited in an interest-bearing account at the United States Department of the Treasury’s Bureau of the Fiscal Services (“BFS”).  

On February 4, 2021, the Commission appointed Miller Kaplan Arase LLP as the tax administrator (“Tax Administrator”) of the Robinhood Fair Fund (“Order Appointing Tax Administrator”). On April 16, 2021, the Commission appointed JND Legal Administration (“JND”) as fund administrator (“Fund Administrator”) and set the bond at $65,000,000.00, in accordance with Rule 1105(c) of the Commission’s Rules on Fair Fund and Disgorgement Plans (“Order Appointing Fund Administrator”).  The Fund Administrator will cooperate with the Tax Administrator in providing information necessary to accomplish income tax compliance of the Fair Fund. You can review and download a copy of these Orders as well as other important documents relating to the Fair Fund through the “Important Documents” tab on this website.

Distribution Plan

On August 6, 2021, the SEC approved a plan for the distribution of the Fund (the “Plan”).  Individuals and entities who traded with Robinhood Financial, LLC from July 1, 2016 through June 30, 2019, and were harmed as a result of the conduct described in the Cease-and-Desist Proceeding referenced above, may be eligible for a distribution payment from the Fair Fund (the "Fair Fund"). You do not need to submit a claim form; eligible investors will be identified, and distribution payments calculated, based on the records obtained by the SEC staff during the investigation of this matter and otherwise.

How do I obtain more information?

Additional information can be found by visiting the “Important Documents” tab or the “Frequently Asked Questions” tab visible at the top of this webpage.  You can obtain information additional on what is available through this website by contacting the Fund Administrator toll-free at 1-833-961-3963; by emailing Info@RobinhoodFinancialFairFund.com; or by mailing a letter to:

Robinhood Financial Fair Fund
c/o JND Legal Administration
PO Box 91404
Seattle, WA 98111