This case was last updated from U.S. District Courts on 07/14/2022 at 05:41:28 (UTC).

Mehta v. Robinhood Financial LLC et al

Case Summary

On February 09, 2021, Siddharth Mehta, Kevin Qian, and Michael Furtado, on behalf of themselves and others similarly situated (“the Class”), (collectively, “Plaintiffs”), represented by Kevin M. Osborne, Julie C. Erickson, and Elizabeth A. Kramer of Erickson Kramer Osborne, LLP, filed a personal property fraud class-action lawsuit against Robinhood Financial LLC (“Robinhood Financial”) and Robinhood Securities, LLC (“Robinhood Securities”), (collectively, “Robinhood” or “Defendants”), represented by Mark D. McPherson, Michael Burshteyn, Nicole V. Ozeran, and Tiffany Cheung of Morrison & Foerster LLP, seeking injunctive relief and damages for alleged negligence in failing to fully inform customers regarding the nature and scope of security failures and unauthorized activity. This case was filed in the U.S. District Court for the Northern District of California, with Judge Susan Van Keulen presiding. 

In the complaint, the plaintiffs alleged, “Robinhood brands itself as a securities trading platform designed for millennial users. In just over five years, it has attracted more than thirteen million customers through youth-focused marketing, a video game-like interface, and claims it enables ‘investing for everyone.’ While the company has narrowly focused on break-neck growth, it has neglected to build out its security infrastructure to adequately protect its customers’ sensitive information.”

The plaintiffs further alleged, “In the summer and fall of 2020, and perhaps even earlier, unauthorized users accessed approximately 2,000 Robinhood customers’ accounts. Upon accessing the accounts, these unauthorized users obtained Robinhood’s customers’ sensitive personal and financial information and looted funds. Panicked customers who saw their accounts draining attempted to contact Robinhood by email, as Robinhood offers no phone number for customer service, and were left waiting for days or weeks while more funds were depleted from their accounts. The breach cost Robinhood’s customers millions of dollars.”

The plaintiffs also alleged, “Rather than freezing the accounts and alerting its customers of the breach right away as required under California law, Robinhood said and did nothing. Only when news outlets reported on the breach did Robinhood acknowledge it had occurred.” 

The plaintiffs then alleged, “Customers have since asked Robinhood to make good on the promise it makes to cover 100 percent of any losses caused by unauthorized activity. While the company has compensated some individuals, it has refused others’ requests without explanation.”

The plaintiffs listed eight claims for relief, including allegations of negligence, breach of contract, and violations of the California Consumer Privacy Act, the Customer Records Act, the Consumers Legal Remedies Act, the California Constitution’s right to privacy, Unfair Competition Law, and False Advertising Law.

In the prayer for relief, the plaintiffs requested a judgment seeking to certify this action as a class action and enjoin the defendant from further violations. The plaintiffs also requested actual and compensatory damages, civil and statutory penalties, restitution, pre-judgment and post-judgment interest, attorneys’ fees, costs, and expenses.

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    5:21-CV-01013

  • Filing Date:

    02/09/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Property - Other Personal Property

Judge Details

Presiding Judge

Susan van Keulen

 

Party Details

Plaintiff

Siddharth Mehta

Defendants

Robinhood Financial LLC

Robinhood Securities, LLC

Attorney/Law Firm Details

Plaintiff Attorneys

Elizabeth Antonia Kramer

Attorney at Erickson Kramer Osborne LLP

44 Tehama Street

San Francisco, CA 94105

Julie C. Erickson

Attorney at Erickson Kramer Osborne

44 Tehama Street

San Francisco, CA 94105

Kevin M. Osborne

Attorney at Erickson Kramer Osborne LLP

44 Tehama St.

San Francisco, CA 94105

Defendant Attorneys

Mark David McPherson

Attorney at Morrison Foerster LLP

425 Market Street

San Francisco, CA 94101

Michael Burshteyn

Attorney at Morrison & Foerster LLP

425 Market Street

San Francisco, CA 94105

Nicole V. Ozeran

Attorney at Morrison & Foerster LLP

707 Wilshire Boulevard, Suite 6000

Los Angeles, CA 90017-3543

Tiffany Cheung

Attorney at Morrison & Foerster LLP

425 Market Street

San Francisco, CA 94105

 

Court Documents

#63

(#63) Declaration of Steven Weisbrot in Support of #61 MOTION for Settlement Preliminary Approval filed bySiddharth Mehta. (Related document(s) #61 ) (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

#62

(#62) Declaration of Elizabeth Kramer in Support of #61 MOTION for Settlement Preliminary Approval filed bySiddharth Mehta. (Related document(s) #61 ) (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

#61

(#61) MOTION for Settlement Preliminary Approval filed by Siddharth Mehta. Motion Hearing set for 8/23/2022 10:00 AM in San Jose, Courtroom 6, 4th Floor before Magistrate Judge Susan van Keulen. Responses due by 7/15/2022. Replies due by 7/22/2022. (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

60 #4

Proposed Final Order and Judgment

60 #3

Proposed Preliminary Approval Order

60 #2

Claim Form

60 #1

Class Notice

60 #60

Main Document

#59

(#59) ORDER by Judge Susan van Keulen Granting #58 Stipulation Regarding Case Schedule. (svklc2, COURT STAFF) (Filed on 6/6/2022) (Entered: 06/06/2022)

#9

#8

#7

#6

#5

#3

#2

1 #1

Civil Cover Sheet

#1

89 More Documents Available
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Docket Entries

  • 07/01/2022
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  • Docket(#63) Declaration of Steven Weisbrot in Support of #61 MOTION for Settlement Preliminary Approval filed bySiddharth Mehta. (Related document(s) #61 ) (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

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  • 07/01/2022
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  • Docket(#62) Declaration of Elizabeth Kramer in Support of #61 MOTION for Settlement Preliminary Approval filed bySiddharth Mehta. (Related document(s) #61 ) (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

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  • 07/01/2022
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  • Docket(#61) MOTION for Settlement Preliminary Approval filed by Siddharth Mehta. Motion Hearing set for 8/23/2022 10:00 AM in San Jose, Courtroom 6, 4th Floor before Magistrate Judge Susan van Keulen. Responses due by 7/15/2022. Replies due by 7/22/2022. (Kramer, Elizabeth) (Filed on 7/1/2022) (Entered: 07/01/2022)

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  • 07/01/2022
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  • Docket(#60) NOTICE of Filing of Class Action Settlement Agreement by Siddharth Mehta (Attachments: #1 Class Notice, #2 Claim Form, #3 Proposed Preliminary Approval Order, #4 Proposed Final Order and Judgment)(Kramer, Elizabeth) (Filed on 7/1/2022) Modified on 7/5/2022 (jml, COURT STAFF). (Entered: 07/01/2022)

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  • 06/06/2022
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  • Docket(#59) ORDER by Judge Susan van Keulen Granting #58 Stipulation Regarding Case Schedule. (svklc2, COURT STAFF) (Filed on 6/6/2022) (Entered: 06/06/2022)

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  • 06/03/2022
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  • Docket(#58) STIPULATION WITH PROPOSED ORDER re Case Schedule filed by Siddharth Mehta. (Erickson, Julie) (Filed on 6/3/2022) (Entered: 06/03/2022)

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  • 05/05/2022
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  • Docket(#57) ORDER re #56 Status Report VACATING CASE MANAGEMENT SCHEDULING ORDER; SETTING DEADLINE TO FILE MOTION FOR PRELIMINARY APPROVAL OF SETTLEMENT. (svklc2, COURT STAFF) (Filed on 5/5/2022) (Entered: 05/05/2022)

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  • 05/04/2022
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  • Docket(#56) STATUS REPORT of the Parties by Siddharth Mehta. (Kramer, Elizabeth) (Filed on 5/4/2022) (Entered: 05/04/2022)

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  • 01/28/2022
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  • Docket(#55) ORDER by Judge Susan van Keulen granting #54 Order re Case Schedule. (svklc2, COURT STAFF) (Filed on 1/28/2022) (Entered: 01/28/2022)

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  • 01/28/2022
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  • Docket(#54) STIPULATION WITH PROPOSED ORDER re Case Schedule filed by Siddharth Mehta. (Kramer, Elizabeth) (Filed on 1/28/2022) (Entered: 01/28/2022)

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46 More Docket Entries
  • 02/23/2021
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  • Docket(#9) CONSENT/DECLINATION to Proceed Before a US Magistrate Judge by Robinhood Financial LLC, Robinhood Securities, LLC.. (McPherson, Mark) (Filed on 2/23/2021) (Entered: 02/23/2021)

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  • 02/16/2021
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  • Docket(#8) STIPULATION EXTENDING DEFENDANTS ROBINHOOD FINANCIAL LLC AND ROBINHOOD SECURITIES, LLCS TIME TO RESPOND TO PLAINTIFFS COMPLAINT filed by Robinhood Financial LLC, Robinhood Securities, LLC. (McPherson, Mark) (Filed on 2/16/2021) (Entered: 02/16/2021)

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  • 02/10/2021
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  • Docket(#7) CERTIFICATE OF SERVICE by Robinhood Financial LLC, Robinhood Securities, LLC re #5 Initial Case Management Scheduling Order with ADR Deadlines and Brochure Entitled Consenting to the Jurisdiction of a Magistrate Judge (Cheung, Tiffany) (Filed on 2/10/2021) (Entered: 02/10/2021)

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  • 02/10/2021
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  • Docket(#6) CERTIFICATE OF SERVICE by Robinhood Financial LLC, Robinhood Securities, LLC re #1 Notice of Removal, #3 Notice (Other), 4 Case Assigned by Intake,,, #2 Certificate of Interested Entities (Cheung, Tiffany) (Filed on 2/10/2021) (Entered: 02/10/2021)

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  • 02/10/2021
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  • Docket#Electronic filing error. Incorrect event used. [err101]Corrected by Clerk's Office. No further action is necessary. Re: #2 Certificate of Interested Entities, filed by Ro binhood Securities, LLC, Robinhood Financial LLC (cv, COURT STAFF) (Filed on 2/10/2021) (Entered: 02/10/2021)

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  • 02/10/2021
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  • Docket(#5) Initial Case Management Scheduling Order with ADR Deadlines: Case Management Statement due by 5/4/2021. Initial Case Management Conference set for 5/11/2021 09:30 AM in San Jose, Courtroom 6, 4th Floor. (cv, COURT STAFF) (Filed on 2/10/2021) (Entered: 02/10/2021)

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  • 02/09/2021
  • Docket(#4) Case assigned to Magistrate Judge Susan van Keulen. Counsel for plaintiff or the removing party is responsible for serving the Complaint or Notice of Removal, Summons and the assigned judge's standing orders and all other new case documents upon the opposing parties. For information, visit E-Filing A New Civil Case at http://cand.uscourts.gov/ecf/caseopening.Standing orders can be downloaded from the court's web page at www.cand.uscourts.gov/judges. Upon receipt, the summons will be issued and returned electronically. Counsel is required to send chambers a copy of the initiating documents pursuant to L.R. 5-1(e)(7). A scheduling order will be sent by Notice of Electronic Filing (NEF) within two business days. Consent/Declination due by 2/23/2021. (bwS, COURT STAFF) (Filed on 2/9/2021) (Entered: 02/10/2021)

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  • 02/09/2021
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  • Docket(#3) NOTICE by Robinhood Financial LLC, Robinhood Securities, LLC Proof Of Filing Of Notice Of Filing Of Removal (Cheung, Tiffany) (Filed on 2/9/2021) (Entered: 02/09/2021)

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  • 02/09/2021
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  • Docket(#2) Certification And Notice Of Interested Entities (Fed. R. Civ. P. 7.1, L.R. 3-15) (Cheung, Tiffany) (Filed on 2/9/2021) Modified text on 2/10/2021 (cv, COURT STAFF). (Entered: 02/09/2021)

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  • 02/09/2021
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  • Docket(#1) NOTICE OF REMOVAL Defendants Robinhood Financial LLC And Robinhood Securities, LLC's Notice Of Removal from Superior Court of California, County of Santa Clara. Their case number is 21CV375167. (Filing fee $402 receipt number 0971-15555791). Filed byRobinhood Securities, LLC, Robinhood Financial LLC. (Attachments: #1 Civil Cover Sheet)(Cheung, Tiffany) (Filed on 2/9/2021) (Entered: 02/09/2021)

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