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A Washington federal judge has awarded $2.2 million in attorney fees and granted final approval to a $9 million settlement resolving claims that stock-trading app Robinhood's referral program caused nonusers to receive unsolicited promotional texts, violating Evergreen State law.

Settlement Approved by Judge Rothstein

U.S. District Judge Barbara J. Rothstein issued an order Tuesday stating that she finds the terms of the deal to be fair, reasonable, and adequate "in light of the complexity, expense, and duration of litigation, and the risks involved in establishing liability and damages, and maintaining the class action through trial and appeal."

Robinhood $9M Settlement : Attorney Fees and Awards

Judge Rothstein awarded class counsel from Terrell Marshall Law Group and Berger Montague $2.25 million in attorney fees and roughly $142,000 in litigation expenses. Additionally, she approved a $10,000 service award each for class representatives Cooper Moore and Andrew Gillette.

Robinhood $9M Settlement : Settlement Class Details

The settlement class includes all individuals who received a Robinhood Financial LLC referral program text message and were Washington state residents at the time, from Aug. 9, 2017, through Feb. 13, 2024. The class excludes those who "clearly and affirmatively consented in advance to receive Robinhood referral program text messages."

Referral Program Controversy

Robinhood's "Refer a Friend" program allowed users to generate and send texts to their phone contacts via the app, inviting them to join the platform. The 2021 suit alleged these texts violated Washington state's Commercial Electronic Mail Act and Consumer Protection Act.

Legal Representation

The plaintiffs are represented by Beth E. Terrell and Jennifer Rust Murray of Terrell Marshall Law Group and Sophia M. Rios, E. Michelle Drake, Mark Desanto, and Zachary M. Vaughan of Berger Montague. Robinhood is represented by Kenneth E. Payson, Lauren Burdette Rainwater, Eric Franz, and Theo A. Lesczynski of Davis Wright Tremaine LLP.

Robinhood $9M Settlement : Conclusion

The Robinhood $9M settlement marks a significant resolution to the lawsuit over unsolicited promotional texts. With $2.2 million awarded in attorney fees, the case highlights the importance of compliance with state laws regarding electronic communications.