March 2, 2020 was one of the best days in the stock market in over a decade. The Dow Jones Industrial Average increased 5.1%. The move on a percentage basis was the Dow’s biggest since March 2009. It was the largest-ever point gain for the 30-stock average. Most investors were thrilled, but not those who used the Robinhood trading platform.
On the same day the market spiked, the Robinhood trading platform went off line. The outage was corrected after the market closed on Monday, March 2, 2020, but the trading platform failed again on Tuesday, March 3, 2020. Many Robinhood clients were unable to move their positions and others watched as their portfolios plummeted without the ability to do anything to prevent the loss.
Robinhood’s early success was due in large part to its elimination of trading fees, easy to use interface and adoption by tech savvy individuals. However, customer service is not a key focus of Robinhood. They do not have a customer service telephone line, and it appears their primary method of communication with their clients is with delayed response emails and social media.
If you were one of the unfortunate individuals who suffered a loss in your Robinhood account due to this preventable outage, you may be entitled to compensation. Depending on the facts of your case, you have the right to bring a claim against Robinhood for its negligence. Robinhood has offered to work on compensating users “on a case-by-case basis” and has offered users three months of Robinhood Gold services. This $15 credit/offer is simply not enough for most individuals who suffered a loss in their accounts.
Let Us Help You With Robinhood Crash Compensation
If you have lost $50,000 or more in your Robinhood account due to the obvious negligence of Robinhood, we encourage you to contact our office for assistance with Robinhood crash compensation. We are a nationwide litigation law firm that helps investors recover investment related losses. Our experienced attorneys aggressively pursue claims on behalf of clients who have been damaged as the result of negligence, fraud and misconduct by their financial advisors and brokerage firms.
