Law360 (December 16, 2020, 12:12 PM EST) -- Robinhood Financial LLC was hit with a lawsuit Wednesday by Massachusetts securities regulators, who claim the popular trading platform targeted young, inexperienced investors, failing to act in their "best interest" and exposing them to "unnecessary trading risks."
The platform employed "aggressive tactics" to attract new and often inexperienced customers, encouraged "constant" use of the platform, and approved unqualified customers for options trading, according to the complaint.
The regulators accuse Robinhood of acting "without regard for the best interests of its customers and failing to maintain the infrastructure and procedures necessary to meet the demands of its rapidly growing customer base," violating...
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