Robinhood Faces Uncertain Future with Lawsuits and Potential Regulatory Action

Robinhood has been one of the hottest startups in fintech but the firm has run into a number of issues recently with three major outages; these outages have led to a class action lawsuit being filed in Florida due to angry customers seeking reimbursement; “We don’t think they were set up to do it properly,” Mike Taaffe, a Florida-based attorney, tells FinTech Futures. “I think this will force the various state regulators to consider whether they give licences to companies trading purely online without sufficient back-up.”; traders have also filed complaints with the SEC and Finra over the issues and those could force regulators to take a closer look at the fintech; the company is soon launching in the UK and could face further scrutiny there over the same issues; the company is back operating normally but the damage could potentially change Robinhood’s future in the U.S. and UK. Fintech Future