The Washington Western District Court has closed a lawsuit brought against Robinhood over spam marketing messages.

On July 16, 2024, Judge Barbara J. Rothstein signed an order granting final approval of a $9 million settlement between the parties in this case.

Let’s recall that the case, brought by plaintiffs Cooper Moore and Andrew Gillette, focuses on messages that Robinhood clients send to their friends as part of Robinhood’s refer-a-friend campaign. The plaintiffs in this lawsuit are displeased with the fact that they never consented to receive such messages.

The plaintiffs argue that Robinhood substantially assists and supports its users in sending illegal text messages by, inter alia:

• encouraging and incentivizing its users to send referral messages by compensating them with free stock;
• technologically enabling its users to initiate referral text messages through the Robinhood App;
• suggesting which contacts should receive referral text messages when the user uses the “Share Contacts” method;
• composing the text messages;
• composing and providing unique user-specific referral links that a text recipient can use to sign up for Defendant’s services; and
• formulating text and images to be sent as part of the refer-a-friend text messages.

In approving the settlement, the Judge noted that the terms of Settlement Agreement are 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.

This action is a class action against Robinhood on behalf a class of persons defined as:

All persons or entities who received a Robinhood referral program text message, and who were Washington residents at the time of the receipt of such text message, between and including August 9, 2017 and February 13, 2024, which was the date the Court entered an order granting preliminary approval.

Persons who clearly and affirmatively consented in advance to receive Robinhood referral program text messages are excluded from the class.

The Settlement Class does not include Defendant, any entity that has a controlling interest in Defendant, and Defendant’s current or former directors, officers, counsel, and their immediate families.

The Settlement Class also does not include any persons who validly requested exclusion from it.

Upon consideration of Class Counsel’s application for fees and costs and other expenses, the Court awarded $2,250,000 as reasonable attorneys’ fees and $142,407.76 as reimbursement for reasonable out-of-pocket expenses, which shall be paid from the Settlement Fund.

Upon consideration of the application for approval of a service award, Class Representative Cooper Moore is awarded the sum of $10,000.00, and Class Representative Andrew Gillette is awarded the sum of $10,000.00, to be paid from the Settlement Fund, for the service they have performed for and on behalf of the Settlement Class.

The Court authorizes Class Counsel and defense counsel to authorize payment to the Settlement Administrator from the Settlement Fund as set forth in the Settlement Agreement.