This case was last updated from U.S. District Courts on 10/30/2021 at 08:56:08 (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

Defendants

Robinhood Financial, LLC

Virtu Financial, Inc

Citadel Securities, LLC

APEX CLEARING CORPORATION

Wolverine Securities, LLC

TWO SIGNA SECURITIES, LLC

Attorney/Law Firm Details

Plaintiff Attorneys

Michael Abraham Citron

Ely Robert Levy

Igor Hernandez

Kristen Diane Montgomery

Venessa Valdes

Defendant Attorneys

Brandon Fetzer

Elliot Greenfield

Grace Lee Mead

Maeve L. O'Connor

Ryan Thomas Thornton

Ian M. Ross

Andrew G. Gordon

Jessica S. Carey

Kristina A. Bunting

John F. O'Sullivan

Angela Daker

Bryan Daniel Gant

Jack E. Pace, III

John Mark Gidley

James Daryl Gassenheimer

6 More Attorneys Available

 

Court Documents

43 #1

Declaration of Brandon Fetzer (with Exhibits)

43 #43

Main Document

#41

(#41) Corporate Disclosure Statement by Wolverine Securities, LLC identifying Corporate Parent Wolverine Holdings, L.P. for Wolverine Securities, LLC (Gassenheimer, James) (Entered: 10/22/2021)

39 #1

Text of Proposed Order

39 #39

Main Document

#38

(#38) Corporate Disclosure Statement Rule 7.1 by Wolverine Securities, LLC (Gassenheimer, James) (Entered: 10/21/2021)

#37

(#37) NOTICE of Attorney Appearance by James Daryl Gassenheimer on behalf of Wolverine Securities, LLC. Attorney James Daryl Gassenheimer added to party Wolverine Securities, LLC(pty:dft). (Gassenheimer, James) (Entered: 10/21/2021)

#36

(#36) Defendant's Corporate Disclosure Statement by Citadel Securities, LLC identifying Corporate Parent Citadel Securities GP LLC for Citadel Securities, LLC (O'Sullivan, John) (Entered: 10/11/2021)

#35

(#35) NOTICE of Attorney Appearance by John F. O'Sullivan on behalf of Citadel Securities, LLC. Attorney John F. O'Sullivan added to party Citadel Securities, LLC(pty:dft). (O'Sullivan, John) (Entered: 10/11/2021)

#3

1 #7

Civil Cover Sheet

1 #6

Summon(s)

1 #5

Summon(s)

1 #4

Summon(s)

1 #3

Summon(s)

1 #2

Summon(s)

1 #1

Summon(s)

1 #1

Main Document

79 More Documents Available
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Docket Entries

  • 10/25/2021
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  • Docket(#43) Joint MOTION to Change Venue Pursuant to 28 U.S.C. 1404, or in the Alternative ( Responses due by 11/8/2021), MOTION to Dismiss #1 Complaint, (Defendants' Joint Motion to Transfer or in the Alternative Dismiss Complaint) by APEX CLEARING CORPORATION, Citadel Securities, LLC, Robinhood Financial, LLC, TWO SIGNA SECURITIES, LLC, Virtu Financial, Inc, Wolverine Securities, LLC. (Attachments: #1 Declaration of Brandon Fetzer (with Exhibits))(Thornton, Ryan) (Entered: 10/25/2021)

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  • 10/22/2021
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  • Docket(#42) PAPERLESS ORDER granting #39 Motion to Appear Pro Hac Vice. Matthew J. Dolan, may appear and participate in this action on behalf of Defendant Wolverine Securities, LLC. The Clerk shall provide electronic notification of all electronic filings to Matthew J. Dolan, at mdolan@sidley.com. Signed by Magistrate Judge Patrick M. Hunt on 10/22/2021. (hhr) (Entered: 10/22/2021)

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  • 10/22/2021
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  • Docket(#41) Corporate Disclosure Statement by Wolverine Securities, LLC identifying Corporate Parent Wolverine Holdings, L.P. for Wolverine Securities, LLC (Gassenheimer, James) (Entered: 10/22/2021)

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  • 10/22/2021
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  • Docket(#40) Clerks Notice to Filer re #38 Certificate of Other Affiliates/Corporate Disclosure Statement. Other Affiliates/Corporate Parents Not Entered; ERROR - The Filer failed to enter all Other Affiliates/Corporate Parents from the Certificate of Other Affiliates/Corporate Disclosure Statement. Filer is instructed to refile their Certificate of Other Affiliates/Corporate Disclosure Statement and enter the missing Other Affiliates/Corp Parents. Note - Other Affiliates/Corporate Parents do not appear on the docket sheet. (pcs) (Entered: 10/22/2021)

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  • 10/21/2021
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  • Docket(#39) MOTION to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing for Matthew J. Dolan. Filing Fee $ 200.00 Receipt # AFLSDC-15113526 by Wolverine Securities, LLC. Responses due by 11/4/2021 (Attachments: #1 Text of Proposed Order)(Gassenheimer, James) (Entered: 10/21/2021)

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  • 10/21/2021
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  • Docket(#38) Corporate Disclosure Statement Rule 7.1 by Wolverine Securities, LLC (Gassenheimer, James) (Entered: 10/21/2021)

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  • 10/21/2021
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  • Docket(#37) NOTICE of Attorney Appearance by James Daryl Gassenheimer on behalf of Wolverine Securities, LLC. Attorney James Daryl Gassenheimer added to party Wolverine Securities, LLC(pty:dft). (Gassenheimer, James) (Entered: 10/21/2021)

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  • 10/11/2021
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  • Docket(#36) Defendant's Corporate Disclosure Statement by Citadel Securities, LLC identifying Corporate Parent Citadel Securities GP LLC for Citadel Securities, LLC (O'Sullivan, John) (Entered: 10/11/2021)

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  • 10/11/2021
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  • Docket(#35) NOTICE of Attorney Appearance by John F. O'Sullivan on behalf of Citadel Securities, LLC. Attorney John F. O'Sullivan added to party Citadel Securities, LLC(pty:dft). (O'Sullivan, John) (Entered: 10/11/2021)

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  • 09/27/2021
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  • Docket(#34) PAPERLESS ORDER granting #29 #30 #31 Motions to Appear Pro Hac Vice. Maeve L. O'Connor, Brandon Fetzer, and Elliot Greenfield may appear and participate in this action on behalf of Robinhood Financial LLC. The Clerk shall provide electronic notification of all electronic filings to Maeve L. O'Connor, at mloconnor@debevoise.com; to Brandon Fetzer, at bfetzer@debevoise.com; and to Elliot Greenfield, at egreenfield@debevoise.com. Signed by Magistrate Judge Patrick M. Hunt on 9/27/2021. (hhr) (Entered: 09/27/2021)

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24 More Docket Entries
  • 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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