Robinhood Settles Massachusetts 'Gamification' Case for $7.5 Million

The settlement ends a three-year legal battle and includes changes to Robinhood's practices, addressing both its alleged 'gamification' of trading and a 2021 data security breach.

• Robinhood Financial has agreed to pay a $7.5 million fine to settle charges that it violated Massachusetts securities law by using 'gamification' strategies to encourage risky trading.
• The settlement resolves a three-year legal battle and includes changes to Robinhood's practices.
• The case was initiated by Massachusetts Secretary of State William F. Galvin, who expressed concern over how Robinhood attracted young, inexperienced investors.
• The settlement also addresses issues related to a 2021 data security breach that affected Massachusetts customers.
• Despite the settlement, Robinhood maintains that it has already changed its practices and rejects the premise that its app is 'gamified'.

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