This case was last updated from PACER on 09/17/2021 at 12:36:50 (UTC).

Alers v. Robinhood Financial, LLC et al

Case Summary

On August 31, 2021, Jim Antonio Alers (“Plaintiff” or “Mr. Alers”), on his own behalf and on behalf of those similarly situated (collectively, the “Customers” or “Class Members”), represented by Michael Abraham Citron of MAC Legal, PA, filed a contract class action lawsuit against Robinhood Financial, LLC. (“Robinhood”); Citadel Securities, LLC (“Citadel”); Apex Clearing Corporation (“Apex”); Two Signa Securities, LLC (“Two Signa”); Wolverine Securities, LLC (“Wolverine”); and Virtu Financial, Inc. (“Virtu”) (collectively, “Defendants”) seeking disgorgement of profits, monetary damages and costs of litigation for allegedly violating its duty of best execution by failing to conduct adequate regular and rigorous reviews of the execution quality it was providing on customer orders. This case was filed in U.S. District Court in the Southern District of Florida with Judge Marcia G. Cooke and Judge Patrick M. Hunt presiding

 

In its complaint, Plaintiff alleged that, “In perhaps the most dramatic twist of irony, Robinhood, whose namesake is shared with the endearing fairytale hero who stole from the rich to give to the poor, has profited billions from its unsuspecting consumers to engage in less favorable trades from its curated list of principal trading firms, also known as electronic market makers, without first disclosing that its primary revenue source comes to the disadvantage of these same customers.”

 

Plaintiff also alleged that, “This action concerns the material misrepresentations and omissions made by Robinhood relating to its customers regarding its revenue sources, specifically its receipt of payments from certain principal trading firms, for routing Robinhood customer orders to them, and relating to certain false statements about the execution quality Robinhood achieved for its customers’ orders. It also involves Robinhood’s failure to satisfy its duty of best execution.”

 

Plaintiff further alleged that, “Instead of transparent disclosure, Robinhood created a veneer within its customer agreements and trade confirmations by stating it “may” receive payment for order flow and disclosed certain information about those payments as required in its SEC-mandated Rule 606 reports. However, in FAQs section of its website describing how it made money, and in certain communications with customers addressing the same issue, Robinhood omitted payment for order flow when it described its revenue sources because it believed that payment for order flow might be viewed as controversial by customers.”

 

Plaintiff even further alleged that, “From September 2016 through June 2019, while Robinhood was on notice that its high payment for order flow rates from principal trading firms could result in inferior execution prices for its customers, Robinhood violated its duty of best execution by failing to conduct adequate regular and rigorous reviews of the execution quality it was providing on customer orders. Robinhood did not begin comparing its execution quality to that of its competitors until October 2018 and did not take appropriate steps during the entire period to assess whether its higher payment for order flow rates were adversely affecting customer execution prices.”

 

Plaintiff has laid down six claims for relief, wherein the first claim alleged is against Robinhood for breach of fiduciary duty and the second to sixth claims alleged are against Citadel Securities, LLC (“Citadel”); Apex Clearing Corporation (“Apex”); Two Signa Securities, LLC (“Two Signa”); Wolverine Securities, LLC (“Wolverine”); and Virtu Financial, Inc. (“Virtu”) respectively for aiding and abetting breach of fiduciary duty. 

 

In its prayer for relief, Plaintiff requested the Court to certify this action as class action; order disgorgement of all profits obtained by the Defendants as a result of the breach of fiduciary duty; award Monetary damages to compensate Defendant Robinhood’s customers for the losses; and award Plaintiff and the Class damages along with costs, interest, and attorneys’ fees. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    0:21-CV-61848

  • Filing Date:

    08/31/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Other Contract

Judge Details

Presiding Judge

Marcia G. Cooke

Referral Judge

Patrick M. Hunt

 

Party Details

Plaintiff

Jim A. Alers

Hollywood, FL 33021

Defendants

Robinhood Financial, LLC

1540 Glenway Dr

Tallahassee, FL 32301

Virtu Financial, Inc

One Liberty Plaza, 165 Broadway

New York, NY 10006

Citadel Securities, LLC

1200 South Pine Island Road

Plantation, FL 33324

APEX CLEARING CORPORATION

1200 South Pine Island Road

Plantation, FL 33324

Wolverine Securities, LLC

175 W Jackson Boulevard, Ste. 200

Chicago, IL 60604

TWO SIGNA SECURITIES, LLC

100 Avenue Of The Americas, 16Th Floor

New York, NY 10013

Attorney/Law Firm Details

Plaintiff Attorney

Michael Abraham Citron

Attorney at MAC Legal, PA

3100 N. 29Th Court, Suite 100

Hollywood, FL 33020

 

Court Documents

#11

(#11) Notice of Pending, Refiled, Related or Similar Actions by Virtu Financial, Inc (Ross, Ian) (Entered: 09/15/2021)

#10

(#10) Corporate Disclosure Statement by Virtu Financial, Inc (Ross, Ian) (Entered: 09/15/2021)

9 #2

Text of Proposed Order

9 #1

Certification Kristina A. Bunting

9 #9

Main Document

8 #2

Text of Proposed Order

8 #1

Certification Jessica S. Carey

8 #8

Main Document

7 #2

Text of Proposed Order

7 #1

Certification Andrew G. Gordon

7 #7

Main Document

#6

(#6) NOTICE of Attorney Appearance by Ryan Thomas Thornton on behalf of Robinhood Financial, LLC. Attorney Ryan Thomas Thornton added to party Robinhood Financial, LLC(pty:dft). (Thornton, Ryan) (Entered: 09/15/2021)

5 #1

Exhibit A - Proposed Order

1 #7

Civil Cover Sheet

1 #5

Summon(s)

1 #2

Summon(s)

1 #1

Summon(s)

1 #1

Main Document

17 More Documents Available
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Docket Entries

  • 09/16/2021
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  • Docket(#12) PAPERLESS ORDER granting #7 #8 #9 Motions to Appear Pro Hac Vice. Andrew G. Gordon. Jessica S. Carey, and Kristina A. Bunting may appear and participate in this action on behalf of Virtu Financial, Inc. The Clerk shall provide electronic notification of all electronic filings to Andrew G. Gordon, at agordon@paulweiss.com; to Jessica S. Carey, at jcarey@paulweiss.com; and to Kristina A. Bunting, at kbunting@paulweiss.com. Signed by Magistrate Judge Patrick M. Hunt on 9/16/2021. (hhr) (Entered: 09/16/2021)

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  • 09/15/2021
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  • Docket(#11) Notice of Pending, Refiled, Related or Similar Actions by Virtu Financial, Inc (Ross, Ian) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#10) Corporate Disclosure Statement by Virtu Financial, Inc (Ross, Ian) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#9) MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Kristina A. Bunting. Filing Fee $ 200.00 Receipt # AFLSDC-15014360 by Virtu Financial, Inc. Responses due by 9/29/2021 (Attachments: #1 Certification Kristina A. Bunting, #2 Text of Proposed Order)(Ross, Ian) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#8) MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Jessica S. Carey. Filing Fee $ 200.00 Receipt # AFLSDC-15014358 by Virtu Financial, Inc. Responses due by 9/29/2021 (Attachments: #1 Certification Jessica S. Carey, #2 Text of Proposed Order)(Ross, Ian) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#7) MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Andrew G. Gordon. Filing Fee $ 200.00 Receipt # AFLSDC-15014339 by Virtu Financial, Inc. Attorney Ian M. Ross added to party Virtu Financial, Inc(pty:dft). Responses due by 9/29/2021 (Attachments: #1 Certification Andrew G. Gordon, #2 Text of Proposed Order)(Ross, Ian) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#6) NOTICE of Attorney Appearance by Ryan Thomas Thornton on behalf of Robinhood Financial, LLC. Attorney Ryan Thomas Thornton added to party Robinhood Financial, LLC(pty:dft). (Thornton, Ryan) (Entered: 09/15/2021)

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  • 09/15/2021
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  • Docket(#5) Unopposed MOTION for Extension of Time to File Response/Reply/Answer to #1 Complaint, Unopposed MOTION for Extension of Time for Parties to Submit Joint Scheduling Report ( Responses due by 9/29/2021) by Citadel Securities, LLC, Robinhood Financial, LLC, TWO SIGNA SECURITIES, LLC, Virtu Financial, Inc, Wolverine Securities, LLC. Attorney Grace Lee Mead added to party Robinhood Financial, LLC(pty:dft). (Attachments: #1 Exhibit A - Proposed Order)(Mead, Grace) (Entered: 09/15/2021)

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  • 09/02/2021
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  • Docket(#4) ORDER OF REFERRAL AND ORDER REGARDING COURT PRACTICES AND PROCEDURES to Magistrate Judge Patrick M. Hunt for Pretrial Non-Dispositive Matters. Signed by Judge Marcia G. Cooke on 9/2/2021. See attached document for full details. (pcs) (Entered: 09/03/2021)

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  • 09/01/2021
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  • Docket(#3) Summons Issued as to APEX CLEARING CORPORATION, Citadel Securities, LLC, Robinhood Financial, LLC, TWO SIGNA SECURITIES, LLC, Virtu Financial, Inc, Wolverine Securities, LLC. (pcs) (Entered: 09/01/2021)

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  • 08/31/2021
  • Docket(#2) Clerks Notice of Judge Assignment to Judge Marcia G. Cooke. Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge Patrick M. Hunt is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent. Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (pcs) (Entered: 09/01/2021)

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  • 08/31/2021
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  • Docket(#1) COMPLAINT against All Defendants. Filing fees $ 402.00 receipt number AFLSDC-14975342, filed by Jim A. Alers. (Attachments: #1 Summon(s), #2 Summon(s), #3 Summon(s), #4 Summon(s), #5 Summon(s), #6 Summon(s), #7 Civil Cover Sheet)(Citron, Michael) (Entered: 08/31/2021)

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