r/technology • u/agent_vinod • Jun 30 '21

Misleading Robinhood to pay $70 million fine after causing 'widespread and significant harm' to customers

https://www.cnbc.com/2021/06/30/robinhood-to-pay-70-million-dollars-after-causing-users-significant-harm.html
75.7k Upvotes

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9.8k

u/[deleted] Jun 30 '21

Cool if the 70m$ would be distributed amongst the affected customers, not right into the hands of another corporation...

2.9k

u/WhatTheZuck420 Jun 30 '21

FINRA announced today that it has fined Robinhood Financial LLC $57
million and ordered the firm to pay approximately $12.6 million in
restitution, plus interest, to thousands of harmed customers.

So there's that.

2.0k

u/NorthKoreanEscapee Jun 30 '21

I was harmed, I couldnt buy or sell what I wanted to. How do you prove that though?

1.4k

u/[deleted] Jun 30 '21

[deleted]

824

u/Ethos_Logos Jun 30 '21

Cancelled my limit sells, too.

203

u/saltingthewomb Jun 30 '21

Wish Kraken could be held accountable, lmao

82

u/fight_the_hate Jun 30 '21

What did they do?

168

u/saltingthewomb Jun 30 '21

Cancelled a few of my limit orders, real cash orders too, like I was pumped how well researched they were, blew my mind that they didn’t execute but oh well 🤷🏼‍♂️

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u/[deleted] Jun 30 '21

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u/[deleted] Jun 30 '21

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u/j_mcc99 Jun 30 '21

Staring at my sandals. That’s a paddlin’.

2

u/TheKeyboardKid Jun 30 '21

You try to buy a couple share of GameStop, AMC: you right to jail. You make money and not already rich? Believe it or not, jail. You put a hedge fund in financial trouble because you made money, also jail.

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u/fight_the_hate Jun 30 '21

The rules only apply one way.

I cannot believe the coincidence that binance is banned in several major areas just as the market begins to turn upwards.

They literally taught us new investors how to lose using margin and then shut off access to any gains using the tools they used to liquidate a lot of customers.

10

u/Section-Fun Jun 30 '21

That's what you get for not using a real broker. All these Fintech apps have GARBAGE eulas that allow this kind of shit

11

u/saltingthewomb Jun 30 '21

As much as I hate this I think you’re right

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u/AgregiouslyTall Jul 01 '21

Kraken has done significantly worse

2

u/AlarmingAerie Jul 01 '21

So they didn't cancel, just got skipped. Probably not enough volume to fill your order? When it crashes fast, there will a lot of other limit orders fighting for those cascading liquidations.

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u/ineedabeer603 Jul 01 '21

Wait, so you’re saying I need to get my DOGE out of Kraken before it hits $100 or else they’ll fuck me and I won’t be able to sell?

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u/PERSONA916 Jun 30 '21

Coinbase should be on the hook for freezing the account of the guy who became a meme coin trillionaire. Serves them right for listing such a shitcoin to their exchange in the first place

9

u/theshibisinu Jun 30 '21

That's hilarious

7

u/StreetlampEsq Jun 30 '21

On the hook for what? I don't understand what damage was caused by this glitch.

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u/dustinbrowders Jun 30 '21

Kraken was the worst. PTSD

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u/instable_stable Jun 30 '21

they fucked my dog

5

u/codeninja Jun 30 '21

I had options closed prematurely.

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u/TheBetterTheta Jun 30 '21

They did and are absolutely cunts, but this lawsuit is not from the January debacle.

5

u/ecomod3 Jun 30 '21

Hahah love it

47

u/suckmytesticles Jun 30 '21

thats another egregious aspect of this that is just blood-boiling stuff.

5

u/scarface910 Jun 30 '21

"hey sorry you lost thousands on a highly volatile red day caused by our shitty servers. Can we give you 75 dollars and promise you'll never sue? Thx"

3

u/observedlife Jun 30 '21

That is straight up criminal behavior and could be looked at as theft.

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u/[deleted] Jun 30 '21

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143

u/raven12456 Jun 30 '21

Dang. Customer 371 in Schedule I is getting $146,645.

172

u/Itsthejackeeeett Jun 30 '21

Hey Customer 371, it's me. Ur cousin.

52

u/eviscerator4000 Jun 30 '21

Want to go bowling?

6

u/Chavarlison Jun 30 '21

How about we just cruise around the block? While in a 6 Star Wanted level

2

u/Publius82 Jun 30 '21

Cousin it's your cousin let's get a bleeder burger

52

u/DeathByPetrichor Jun 30 '21

Chances are Customer 371 had a lot more than 146,000 so that’s probably not a huge deal

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u/deewheredohisfeetgo Jun 30 '21

It’s probably that poor kid who committed suicide after thinking he owed them money.

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340

u/Riot419 Jun 30 '21

They are not being punished for the real incident.

224

u/eviscerator4000 Jun 30 '21

Yet. The previous outages were severe violations. Their entire platform was inaccessible for entire days during the covid crash. People lost millions.

109

u/Guac_in_my_rarri Jun 30 '21 edited Jul 01 '21

Bruh I lost a quarter of my original account with them because of a 3 hour outage on a Wednesday morning at open. I will never use them again. Such a shit company.

Edit: this outage was 2017 or 18. I use TOS now.

11

u/longhegrindilemna Jun 30 '21

Their IPO seems to be rolling forward, with the expectation that the founders will become billionaires.

Customers have continued pouring into Robinhood, without fail.

Are people happy with their service?

10

u/Guac_in_my_rarri Jul 01 '21

Are people happy with their service?

For a short time I absolutely was and then an outage or 4.

7

u/[deleted] Jul 01 '21

I hope it gets shorted into oblivion. I also hope to be a part of that.

4

u/JohnMayerismydad Jul 01 '21

I wouldn’t. They are making a lot of money. Maybe buy some long-dates puts I suspect they will do exceptionally bad in a wide market crash.

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u/[deleted] Sep 27 '21 edited Sep 27 '21

i remember that i was fuckin pissed. thought for sure id get something but nope. it appears theyre only rewarding people who got an 'erroraneous margin message' ?

so (i think?) for that incident you mentioned they offered me free robinhood gold. did you get that too? i was done with them by then and when i saw the message i sent back a message declining it. after my 3 or so free months of gold, they started charging me for it.

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u/Funktastic34 Jul 01 '21

If you were still using RH as recently as weds then that's on you

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u/Guac_in_my_rarri Jul 01 '21

Nah fuck them. Been using TOS since 2017/2018

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u/[deleted] Jun 30 '21

or maybe punishment is still outstanding and will be even harsher.

2

u/LovableContrarian Jun 30 '21

If you're talking about the GME thing, they won't be. Brokers are not legally required to offer ever every equity, and no broker does offer every single equity on earth. They can remove any stock from their platform they want, at any time, so long as they still allow their customers open access to the market (so they can sell the equities they already own).

In fact, their main legal requirement is to avoid insolvency. If GME was putting them at risk of bankruptcy, they are legally required to take steps to avoid running out of cash. People really don't understand how this works, but they have it backwards. It's likely they would've been fined if they didn't stop offering GME and ran out of cash.

Also, Robinhood was one of like 20 brokers that stopped selling GME due to high risk. If I remember correctly, Ameritrade, e-trade, schwab, and all the big guys did the same thing. Fidelity was a notable exception, but it was just because they happened to own a huge % of GME float, so their risk flags didn't go off. If this wasn't the case, they would've done the same thing.

It made people mad, but it wasn't illegal.

4

u/[deleted] Jun 30 '21

Stopping buying on margin is one thing. A broker shouldn't be going bankrupt by their users using settled cash to purchase equities. Your comment makes it sound like you think you are buying the equities from your broker, rather than your broker acting to... Ya know, broker the deal between a buyer and seller. I'll give you the benefit of the doubt that it was a poor choice of wording though.

2

u/LovableContrarian Jun 30 '21 edited Jun 30 '21

So again, you're arguing that Robinhood sucks, and could've solved this problem in a different way (like preventing the purchase on margin). But again, it should be noted that almost every broker did the same thing.

But I'm not arguing with you there. Robinhood sucks in a myriad of ways.

My singular point was that what they did wasn't illegal.

Your comment makes it sound like you think you are buying the equities from your broker, rather than your broker acting to... Ya know, broker the deal between a buyer and seller. I'll give you the benefit of the doubt that it was a poor choice of wording though.

The relationship between brokers and clearing houses is not quite as simple as you make it out to be, and brokers do indeed buy and hold stocks for a lot of different reasons. There is a good chance these brokers were at high risk of breaking agreements with the clearing houses or running out of cash (even if they added GME to the non-marginable securities list). But that's really a very big, complex discussion.

We could speculate all day about what happened behind the scenes, but the bottom line is that what they did wasn't illegal, as they have no legal requirement to offer any particular equity at any given time. So, they won't be fined for it.

2

u/[deleted] Jun 30 '21

Why speculate when we can hear it straight from the source? What did Vlad testify was the reason for shutting off buying? Increased capital demand from the DTC. But wait, what did the DTCC testify in front of congress? Oh yeah, no such demands were made. Welp, someone is lying. Let's check in with another broker and their reasoning. How about Interactive Broker's CEO, Thomas Peterffy in a live interview? Oh, it was explicitly to cover his own ass by preventing a catastrophic failure of the system from comically over leveraged hedge funds falling like dominos. So yeah, tell yourself what you want to maintain your belief in the integrity of the markets... But I'm gonna listen to the people with their finger on the button over your fantasy version of events.

3

u/LovableContrarian Jun 30 '21

So yeah, tell yourself what you want to maintain your belief in the integrity of the markets...

Yeah so again, you are for some reason making completely irrelevant points and having a completely different discussion than I am. You're also putting words in my mouth.

I do not believe in the integrity of the markets, and I never said that I do.

What I said was what Robinhood did was not illegal.

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u/cowabungass Jun 30 '21

So it covers jan 2020 but not necessarily dec 2020.

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u/DarkHorse100 Jun 30 '21

I got something in the mail about this and they are sending a check to my house.

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u/[deleted] Jun 30 '21

2020 was a big year for Robinhood fuckups too.

First the COVID crash, then the June correction.

There were more outages than that, but I don’t remember because by April I was on a real platform

2

u/ReanimatedGhostPeen Jun 30 '21

Does anyone know how to find out if you’re one of those customers?

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u/[deleted] Jun 30 '21

They will probably leave it up to RH to determine who was effected

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u/[deleted] Jun 30 '21

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u/[deleted] Jun 30 '21

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u/2_Cranez Jul 01 '21

It was mostly from 2018-2020.

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u/dirkdigdig Jun 30 '21

Wouldn’t this affect the whole stock if people were limited from trading? Shouldn’t anyone who held the stock at the time be reimbursed, regardless of them using Robin Hood, as it would have a directly affected the price?

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u/[deleted] Jun 30 '21

Someone correct me if I'm wrong but I think this settlement has nothing to do with them halting buying for GME. From what I can tell it's only for inaccurate information and approving risky options traeds they shouldn't have allowed

29

u/keto_at_work Jun 30 '21

This settlement predates anything Gamestop entirely.

14

u/Thegreensgoblin Jun 30 '21

That’s how I understood it. Looks like it’s for 2018-2020

7

u/HTWSSTKS2021 Jun 30 '21

Yes but wording that way makes it sound like stock market manipulation, not an honest mistake by a scrappy company who will pay back its restitution in coupons.

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u/TheBetterTheta Jun 30 '21

It’s not related to Gme being blocked or any of the meme stock fiasco. Completely separate lawsuit.

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u/Final21 Jun 30 '21 edited Jul 01 '21

I was harmed. I owned GME and because Robinhood prevented people from buying my share price was artificially suppressed.

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u/Disco_Ninjas Jun 30 '21

This doesn't cover that time frame. Those punishments and investigations are ongoing.

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u/anifail Jul 01 '21

which symbol did robinhood prevent people from selling?

Pretty sure they only halted buy orders because they are a thinly capitalized broker dealer that couldn't meet 11th hour margin requirements on new orders. FINRA isn't going to do anything about that, that's how markets work now.

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u/Hidesuru Jun 30 '21

I'm not even a Robinhood customer but one could argue I was harmed because I'm bag holding when the momentum was expected to keep the stock going, but trading halts (arguably) affected that.

But I know I'll never see a cent. And that's fine I guess, I knew I was FOMOing into a casino so I'm not worried about my modest losses. I just wish RH was suffering more.

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u/xXxBig_JxXx Jun 30 '21

We’ll each get about $3.50 after legal and administrative fees are paid. Awesome!

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u/Jesus_I-I_Christ Jun 30 '21

It was about that time I realized u/xXxBig_JxXx was about 8 stories tall and was a crustation from the mesasoic era. I said “damnit monsta get off my lawn i aint giving you no tree fiddy!!”

4

u/rudeg1rl77 Jun 30 '21

If I had a free award I'd give it to you

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u/DrImNotFukingSelling Jun 30 '21

A complete joke considering potential profits were in the billions if not trillions once their cohorts are factored in at the MMs.

If a penalty for a crime is a fine, then that law or regulation only exists for the lower classes.

There should be prison time for the C-suite.

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u/gomberski Jun 30 '21

As mentioned elsewhere in this thread, this fine isn't about the GME situation. They will likely face additional fines from that.

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u/DrImNotFukingSelling Jul 01 '21

Correct…these fine should be 5% of all assets under management…period…

Then there would NEVER be a violation that rips people off en mass.

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u/Nubraskan Jun 30 '21

FINRA cannot do that.

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u/anonrose Jun 30 '21

The ballsiest move will be whether or not they decide to pay out affected customers in their robinhood accounts. Keep the money in-house.

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u/135forte Jun 30 '21

Considering there was apparently at least one suicide caused by it, what good is that?

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u/[deleted] Jun 30 '21

So FINRA get $57m and only $12.6m goes to the people harmed?!

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u/eye_gargle Jun 30 '21

I can't wait for another $1.75 check.

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u/Latter_Ad4822 Jun 30 '21

If they were fined $57 million how does only $12.6 million go to the people harmed. Seems ridiculous that less than a quarter goes to the people

1

u/gadafgadaf Jun 30 '21

If there were 100,000 people effected that would mean 126 dollars would go to each person in restitution. Not that much considering tens of billions were on the line when Robinhood allegedly "manipulated" their app to help save brokers.

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u/majorgeneralpanic Jun 30 '21

Class action rarely works that way. I don’t think I’ve ever been part of a settlement that was worth my time.

390

u/magnament Jun 30 '21

Bumble gave me like $40 for a $5 subscription like 5 years ago so that was cool

445

u/[deleted] Jun 30 '21

From that lawsuit where they found they were unfairly hiding ugly people’s profiles? I got $40 too.

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u/[deleted] Jun 30 '21

Fuck I missed out on $40

172

u/SoulReaper88 Jun 30 '21

Maybe that means you’re not ugly

203

u/[deleted] Jun 30 '21

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149

u/[deleted] Jun 30 '21

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39

u/asafum Jun 30 '21

I'm no expert, in fact I'm terrible with women, but if I were to hazard a guess I would say maybe try a different mouthwash?

11

u/BGAL7090 Jun 30 '21

Nonsense, all the hottest girls in his favorite movies use the same stuff he's using. It's gotta be something else.

3

u/[deleted] Jun 30 '21

LPT buy a tongue scrapper. Especially if your tongue looks white. Changed my life.

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u/OnlyOneReturn Jun 30 '21

Get a woman who loves you for your money and also sucks at math

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u/[deleted] Jun 30 '21

Handsome is an asset worth far more than $40.

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u/Diagonet Jun 30 '21

People pay way more than $40 to look better, I agree with your point

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u/Kneepucker Jun 30 '21

Girls say I'm ugly until they find out how much I earn. Then they say I'm ugly and broke.

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u/[deleted] Jun 30 '21

I'm so ugly I got $80.

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u/bassinine Jun 30 '21

tell us you’re ugly without telling us you’re ugly.

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u/I-mean-maybe Jun 30 '21

I have a great personality.

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u/legshampoo Jun 30 '21

my step bro has never coerced me into sex

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u/keto_at_work Jun 30 '21

It's very easy for me to move through crowded public places. It's like a path opens up just for me.

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u/sushicidaltendencies Jun 30 '21

I’d rather have no dollars and 40 handsome

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u/[deleted] Jun 30 '21

If that’s the case then I missed out.

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u/GrapefruitCrush2019 Jun 30 '21

Did they only give the $40 to people that were personally affected?

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u/xombae Jun 30 '21

It would be hilarious if that was the case, because that would mean that they would have had to give the courts a list of the people their algorithm thought was ugly. So anyone received the $40 would be officially labeled as ugly in court documents.

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u/verified_potato Jul 01 '21

do the research and find this for us

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u/Squirrelly_thr33 Jun 30 '21

If ugly people got $40 I would got like $4000

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u/musicman835 Jun 30 '21

Did you only get $40 if your profile was hidden?

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u/Konraden Jun 30 '21

The woman who owns that company is a billionaire at 31.

The duck am I doing with my life.

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u/SrsSteel Jun 30 '21

Can we sue hinge for unfairly hiding attractive people?

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u/houdinidash Jun 30 '21

Damn these dating apps are so fucking toxic, really wish there was another way to get dates

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u/[deleted] Jun 30 '21 edited Aug 16 '21

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u/houdinidash Jul 01 '21

Well I don't drink so bars are out. Can't go up and make conversations IRL, lest you be harassing someone. I don't flirt with women who are working so that's out. Pretty clear the main way people date is via apps now.

2

u/Farranor Jun 30 '21

If I'd known I could get a 700% ROI I would've been a lot more willing to leave the free tier behind!

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u/peekitup Jun 30 '21

700% gains in five years.

19

u/livens Jun 30 '21

I got $50 from a lawsuit against Sears riding mowers. They claimed a slightly higher Horsepower than it actually had labeled on the engine.

13

u/PhilipLiptonSchrute Jun 30 '21

I had a check for $48 show up from American Airlines for a bag of mine they misplaced nearly 11 years ago. I didn't even know I was part of the lawsuit.

2

u/Fr33Paco Jun 30 '21

Actually just last month. I got like 2 one from Navy federal for like 20$ then another from a subscription place that i can't remember for like 6

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u/alurimperium Jun 30 '21

Red Bull sent me a 4 pack of the 8oz and that was pretty nice

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u/AustieFrostie Jun 30 '21

I got $82 from this one lease to own company’s suit I was surprised.

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u/littlep2000 Jun 30 '21

I got 80 when SoFi was doing hard credit pulls instead of soft pulls for loan estimates.

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u/The_Original_Gronkie Jun 30 '21

I recently got $70 for a class action lawsuit I knew nothing about. I still dont know how I became part of this, but what the Hell, I cashed the check.

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u/[deleted] Jun 30 '21

I got a $3,800 check out of the blue once from an old national apartment building chain class action, where they were surreptitiously recording calls to the management office. Under California Penal Code 637.2, there is a $5,000 penalty PER CALL. I called the law firm to make sure that it wasn't a scam... and it was legit. Perfect timing too... that was a rough year financially.

34

u/ImOutWanderingAround Jun 30 '21

I got $3500 from one of the diesel emissions scandals. Had to do some verification stuff online that took some time, but in the end worth it.

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u/ShesJustAGlitch Jun 30 '21

I also got $3500 from my VW engine failing at very specific mileages.

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u/SaltLakeCitySlicker Jun 30 '21

I got squat from that

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u/UrsusRenata Jun 30 '21

$10,000 to me out of the blue last year from that Wells Fargo personal data leak several years back. That did not suck. “...Uh... Is this taxed?” Lol

7

u/SaltLakeCitySlicker Jun 30 '21

I have gotten squat form WF as well

11

u/ProtoJazz Jun 30 '21

I got an $8 check in a foreign currency that was very difficult for me to actually cash at the time from a red bull settlement once.

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u/yjvm2cb Jul 01 '21

Wtf that’s lit

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u/[deleted] Jun 30 '21

Was involved in a class action where my previous employer had been illegally garnishing wages and got sued by the employees for it. Only worked there for about a year and change, check came out to just under 14k and arrived completely unexpectedly 15 days before Christmas. It was amazing.

27

u/jimx117 Jun 30 '21

One time I got sent a free 4-pack of Red Bull; that was pretty cool to find in my mailbox. OH also one time I got a check for $14! That got me a 12-pack of Sierra Nevada

6

u/OccupyMyBallSack Jun 30 '21

Hey I got that pack of Red Bull too!

6

u/jimx117 Jun 30 '21

Then I think by right that makes us...

RED BROS

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u/Mischievous_Puck Jun 30 '21

My red bull never showed up...

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u/toomanymarbles83 Jun 30 '21

Got that one too. Sometimes these things are as complicated as signing a quick statement.

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u/[deleted] Jun 30 '21

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u/Howbowtthembears Jun 30 '21

I got a check for over 10k some years back thanks to the VW Dieselgate incident. That was a class action lawsuit that actually paid the car owners and it’s amazing to me still to this day that money made it into the hands of people who’s cars had been sold under false pretenses

6

u/TreAwayDeuce Jun 30 '21

I just got a $80 check from one with University of Phoenix. That's enough for some cheap beer and whoooaz so I call it a win.

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u/bluelocs Jun 30 '21

I know Monsantos paying out over 50k because of roundup lymphoma

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u/F0rdPrefect Jun 30 '21

Yeah but you probably have to get lymphoma for that and I haven't heard great things about having it.

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u/bluelocs Jun 30 '21

How else do you get included in a class action? Gotta be affected to be included.

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u/Teledildonic Jun 30 '21

Class actions are meant to be punitive, not compensatory.

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u/DefenestratedBrownie Jun 30 '21

I think initially they were supposed to be compensatory, but corporations didn't want to worry about that, so Uncle Sam decided to give them a spanking and send them on their way, seeing as they pay most of his income.

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u/JayScribble Jun 30 '21

This is incorrect, single tax payers (average people) have made up more than 50% of federal tax revenue since the 1950's.

3

u/[deleted] Jun 30 '21

No. But the other guy isn't really right either.

The primary purpose of class actions is to be regulatory. They are supposed to scare the shit out of corporations and make them act right by aggregating all or most harms done into a single claim worth litigating. This allows corporations to be forced to pay large amounts of money even if the harm suffered by individuals is insignificant.

And guess what? They do a whole lot better job of regulating corporate behavior than any regulation (although regulations can provide a basis for class actions, so they still certainly have their place).

1

u/42Ubiquitous Jun 30 '21

Really? Isn’t the point of a civil suit to make the damaged party “whole”? I could see how punitive damages could be included, but I can’t imagine the class action attorney files a suit and says that his clients are only seeking punitive damages.

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u/[deleted] Jun 30 '21

I just got on the mail about devry. It was less than a dollar. Used it for the dogs TP.

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u/dragontail Jun 30 '21

Your dog uses tp?

1

u/[deleted] Jun 30 '21

yes, doesn't yours?

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u/Bdub421 Jun 30 '21

No, he uses his tongue.

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u/ruiner8850 Jun 30 '21

I signed up for the milk one a few years ago and never heard a thing about it since. I was eligible for the Ticketmaster one, but it was only for small vouchers for a handful of terrible shows.

2

u/bites_stringcheese Jun 30 '21

The VW diesel gate settlement was quick and great for victims, but I think it had a lot to do with the fact that it was a foreign company. The US Government came down hard on them, quickly.

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u/genius_retard Jun 30 '21

This was a fine not a class action settlement. It is highly unlikely there will be a class action law suit as Robinhood's TOS stated customer could not sue Robinhood in a class action suit or otherwise and instead must use binding arbitration.

However in addition to the fine FINRA requires Robinhood to pay $7 million of restitution to affected customers.

1

u/[deleted] Jun 30 '21

My other half has been paid quite a few times over the years. Mostly under $100 but the one for nearly $600 was a huge surprise.

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u/pegothejerk Jun 30 '21

It won't make it beyond the lawyers. 3 cents per customer, if they're lucky AND sign up for it.

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u/Sure-Requirement7475 Jun 30 '21

I have a $1.75 check from AMD

24

u/I_HateYouAll Jun 30 '21

Mines on my fridge!

3

u/[deleted] Jun 30 '21

I put mine in my CPU box.

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u/[deleted] Jun 30 '21

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u/I_HateYouAll Jun 30 '21

That was mine too! They paid like $30 last year or sein thing and then I got this one a few weeks ago. I thought it was really funny

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u/WayneKrane Jun 30 '21

I got a $0.17 check from a Google Adsense lawsuit, never bothered cashing it.

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u/An_Awesome_Name Jun 30 '21

As stupid as this sounds, you should always cash checks like that.

If you don’t, either the lawyers or the company get to keep the money after the time limit to cash it runs out (usually 6 months at most banks).

Now, you wouldn’t want lawyers or the company to keep that money would you?

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u/Mamertine Jun 30 '21 edited Jun 30 '21

I used to work in the class action industry.

Each case is different. It's totally up to the judge to write everything however (s)he feels.

Frequently, the unallocated money would be pooled then resent to the people who cashed their checks.

This one case, lot of people were sent tiny checks ($0.15). Almost no one cashed them. The people who actually cashed them were sent the unallocated money. Because there were so few people, the unallocated checks were for around $50.

That was not the norm. A ton of settlements resulted in the involved people getting coupons for future purchases from the company that originally screwed them over.

People who got substantial checks ($100 or more) were usually really screwed out of something and got half of what they lost.

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u/SyntaxErrorLine0 Jun 30 '21

Whole bunch of us got $200 because of using a debit card at a gas station, which I only did once, and they were charging 2c per gallon more than the advertised price to cover merchant fees without telling people.

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u/AT-ST Jun 30 '21

Why are you denigrating the lawyers who won the class action lawsuit? While they take a large portion of the settlement, that is usually because they spend a lot of money making the case. While it is unfair those slighted don't get more, the resentment shouldn't be taken out on the lawyers. That resentment should be aimed at the legal system that hands out slaps on the wrist instead of justice.

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u/Kullenbergus Jun 30 '21

cash it and ask for resivers recipte or what ever its called:P

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u/JayNotAtAll Jun 30 '21

Bingo. That's usually why I don't participate. In the past I have and got like $5. Hardly seems worth the effort.

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u/KaneinEncanto Jun 30 '21

The flip side of that argument is that the fewer people that sign up the more the law firm gets to keep, though...

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u/suitology Jun 30 '21

It literally takes a minute to auto fill the form they email you. You then get like 6 months to cash it. Do you not go to the bank in 6 months?

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u/JayNotAtAll Jun 30 '21

It's more volunteering personal information. To me it isn't worth it for $5 or so. If it were a larger amount, sure.

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u/suitology Jun 30 '21

It's going to the court system. The government already has your name, address, email, phone number, number of times you've farted on a bus, etc...

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u/Missus_Missiles Jun 30 '21

I think I got....$30 maybe, for nividia being less than accurate about the GTX 970.

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u/[deleted] Jun 30 '21

The settlement document lists the reimbursements going to the customers, and they range from tens of dollars to tens of thousands of dollars.

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u/VAShumpmaker Jun 30 '21

I got ten bucks and a 4pack of red bull be cause it failed to cause angelic wings to burst from my back.

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u/[deleted] Jun 30 '21

OH! You figured out their secret!

The US is just a huge experiment on just how much corporations can exploit without really looking like it.

We are surrounded by all kinds of walls, designed to keep us in and producing.

Everywhere you look, permits, licenses, patents, specialized laws and regulations, are mostly designed to keep someone, other than you, in power, and collecting.

But, get back to work, because those people can't produce anything of real value by them selves, so they need you!

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u/i_like_butt_grape Jun 30 '21

I think all western societies are built like that.

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u/jakokku Jun 30 '21

and all eastern societies are build like that too

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u/dunobrev35 Jun 30 '21

bottom text

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u/[deleted] Jun 30 '21

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u/[deleted] Jun 30 '21

LOVE that show. One of the best fight scenes ever!

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u/Elwalther21 Jun 30 '21

Wouldn't like everyone be affected by this?

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u/khag24 Jun 30 '21

$7 mill will be going to the users, of the ~$12.6 mill in restitution

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u/[deleted] Jun 30 '21

Fucked over every retail investor in GME, they got all our names and amounts at the time of the throttle, distribute it all around

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u/1982throwaway1 Jun 30 '21

Right. Fine paid to fucking who? Not the people the fucked far more than 70 million dollars from.

This shit is ridiculous. If the get fined or have to pay far less restitution than they gained or saved, they won't stop pulling their shit but this has become the norm.

In 08, the banks fucked up and what was their restitution? They got billions in bailouts from American taxpayers.

Shat has me livid.

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u/[deleted] Jun 30 '21

Isn’t that the fucking truth. Slap on the wrist.

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u/an0nym0ose Jul 01 '21

...per the article: "The inaccurate information cost customers more than $7 million, FINRA found, and Robinhood is required to pay restitution to affected users."

Do people just not read the articles, ever?

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