![]() Separately on Tuesday, the New York State Department of Financial Services fined Robinhood’s cryptocurrency arm $30 million for allegedly violating reporting requirements related to anti-money laundering and cybersecurity regulations. The company planned to notify all employees via email and Slack on Tuesday with their status as well as resources if they were affected. The layoffs will affect employees across all functions of the company, with operations, marketing and program management positions being the hardest hit, he said. He added: ” As CEO, I approved and took responsibility for our ambitious staffing trajectory – this is on me.” “In this new environment, we are operating with more staffing than appropriate.” “Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022,” Tenev wrote in a message to employees. ![]() HOOD-winked? Investors not celebrating one year after Robinhood's IPO Robinhood, a financial services company that allows its users to trade stocks, ETFs, and cryptocurrency, priced its shares at 38 dollars per share in its initial public offering (IPO), putting the value of the company at 32 billion dollars. The logo of Robinhood Financial LLC, is seen on the Nasdaq stock exchange for the company's initial public offering in New York, New York, USA, 29 July 2021. The company’s staffing and operations approach, he added, was tailored for a continuation of the high-growth crypto boom of the pandemic era. Robinhood’s monthly active users in June decreased by more than 7 million, or 34%, and that assets under custody have dropped by more than $37 billion, or 37%, from the second quarter of last year. In its second-quarter earnings report, also released Tuesday, the company showed a 44% drop in revenue from a year ago. In a blog post on the company’s website, Robinhood CEO Vlad Tenev said the “deterioration of the macro environment” - notably decades-high inflation coupled with a cryptocurrency crash - has reduced the company’s customer trading activity and assets under custody. In a separate development Tuesday, the state of New York hit the Menlo Park, California, firm with a $30 million fine. The latest cuts, which will affect 780 employees, continues a massive freefall for the once high-flying online brokerage. You will not receive any payment or credit monitoring services and you give up your right to sue Defendants about the claims in the case.Just months after cutting 9% of its workforce, Robinhood on Tuesday announced plans to lay off another 23%. If you do not exclude yourself, and if you disagree with the Settlement, you can write to the Court to explain your objection.įor instructions on how to Object, click here. You will receive no benefits and you will keep any rights you currently have to sue the Defendants.įor instructions on how to Exclude Yourself, click here. If you exclude yourself (“opt out”), you will not be included in the Settlement. ![]() If you submit a claim, you give up your rights to sue the Defendants over the claims released in the Settlement. YOU MUST SUBMIT A CLAIM FORM TO RECEIVE A PAYMENT. You can submit a Claim Form electing one or more of the payments and benefits described in the Notice. The Notice contains information about the Settlement and the lawsuit. ![]() Your legal rights are affected whether you act or don’t act.Robinhood denies all charges of wrongdoing and liability. ![]() Also as part of the Settlement, Robinhood will agree to maintain certain security policies and practices, including two-factor authentication screening for, and prompting users to update, potentially compromised passwords proactive monitoring for account takeovers customer awareness campaigns that provide information and tools for better cybersecurity hygiene and real-time voice support.For every Class Member who submits a claim, the Settlement provides up to $100 for out-of-pocket expenses resulting from unauthorized access, up to $100 in reimbursement for credit monitoring or identity theft protection services that were purchased based on the unauthorized access, up to $60 as a payment for time spent responding to the unauthorized access, and credit monitoring services for two years.There is no evidence that unauthorized access to customer accounts was caused by a breach of Robinhood’s computer network. Plaintiffs allege that Robinhood failed to use adequate security practices in connection with its trading platform, making customer accounts vulnerable to account takeovers. A Settlement has been reached in a putative class action lawsuit against Robinhood Financial, LLC and Robinhood Securities, LLC (“Robinhood” or “Defendants”). ![]()
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