Robinhood $2 Million Settlement Over Order Routing and Trade Execution
Robinhood has agreed to pay $2 million to settle a class action lawsuit alleging the popular investing app failed to obtain the best available price when executing customer trades — a practice known as “best execution.” Former Robinhood customers who placed qualifying trades between 2016 and 2018 can file a claim by July 13, 2026.
What Is the Lawsuit About?
The lawsuit alleged that Robinhood routed customer orders to market makers in exchange for payment for order flow, and that this arrangement led to customers receiving worse execution prices than they would have on the open market. Plaintiffs argued this effectively constituted a hidden trading fee that Robinhood failed to disclose adequately.
Who Qualifies?
You may be eligible if you placed one or more market orders to buy or sell equities on the Robinhood platform between September 1, 2016 and September 1, 2018, and the execution price differed from the National Best Bid/Offer by more than $5 in aggregate. Active Robinhood users receive payment automatically; former account holders must file a claim.
How Much Will You Receive?
Current active Robinhood account holders are expected to receive approximately $17.60 automatically credited to their accounts. Former account holders who file a valid claim will receive payment by check. The exact amount may vary based on the total number of verified claimants.
How to File a Claim
Former Robinhood customers must file at robinhoodorderflowsettlement.com. The claim deadline is July 13, 2026. Active account holders do not need to take any action to receive their payment.
- Claim Deadline: July 13, 2026
- Settlement Fund: $2 million
- Official Site: robinhoodorderflowsettlement.com
OpenClassActions.org provides this information for educational purposes only and is not affiliated with Robinhood or the settlement administrator.
View the Robinhood order routing settlement details on OpenClassActions.com.