Robinhood

This class action seeks relief on behalf of Robinhood’s online trading customers who participated in Robinhood’s “Deposit Sweep” program. Under the Deposit Sweep program, Robinhood transfers uninvested cash in customers’ brokerage accounts into interest-bearing accounts at other institutions.

Plaintiffs allege that, rather than fulfill its duties toward customers, Robinhood uses the Deposit Sweep program to enrich itself by pocketing nearly all of the interest generated. Although Robinhood claims that the Deposit Sweep program provides additional value to its brokerage customers, the numbers tell a different story. The company nets millions in revenue each year from the program and provides its customers with an astonishingly low interest rate on cash deposits—dropping as low as 0.01%. What’s more, Robinhood’s customers are bound by agreements stating that the rates are “based upon prevailing economic and business conditions,” but customers’ returns have remained at levels far below federal and other comparable rates.

KTMC filed the complaint—the first of its kind against Robinhood—in October 2024 on behalf of Plaintiff Basudeb Dey and all other similarly situated Robinhood customers. On April 28, 2025, the Court denied Robinhood’s motion to dismiss Plaintiff Dey’s claim for breach of the implied covenant of good faith and fair dealing, allowing leave to amend. In June 2025, the Court appointed KTMC to serve as Interim Co-Lead Counsel for the putative class and ordered that all current and future overlapping actions proceed as a single action under the Dey docket, with a Consolidated Complaint filed in July 2025. The case is currently in discovery.