Robinhood Markets, Inc. Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) common stock pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Offering Documents”) issued in connection with Robinhood’s initial public offering (“IPO”) on or around July 30, 2021.

The complaint alleges that Robinhood’s Offering Documents contained representations that were materially inaccurate, misleading, and/or incomplete because they failed to disclose that, at the time of the IPO, Robinhood’s revenue growth was experiencing a major reversal, with transaction-based revenues from cryptocurrency trading serving only as a short-term, transitory injection, masking what was actually stagnating growth. In addition, Robinhood’s “significant investments” in enhancing the reliability and scalability of its platform were patently inadequate and/or defective, exposing Robinhood to worsening service-level disruptions and security breaches, particularly as Robinhood scaled its services to a larger user base.

Current Status of Case:
On January 24, 2024, the District Court granted Defendants’ Motion to Dismiss, and on February 21, 2024, the Lead Plaintiff appealed the dismissal to the United States Court of Appeals for the Ninth Circuit. Following written and oral arguments, on August 29, 2025, the Ninth Circuit Court affirmed in part and reversed in part the District Court’s decision, and sent the case back to the District Court to continue being litigated. However, on February 5, 2026, Defendants filed a Petition for a Writ of Certiorari to the Supreme Court, asking it to review the Ninth Circuit Court’s decision to send the case back to continue in the District Court. As a result, the action has been paused while the parties submit briefs to the Supreme Court.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.