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Robinhood Suffers Third Outage in a Week

March 11, 2020

Robinhood’s brokerage customers again complained about its platform's functionality amid market volatility spurred by coronavirus fears, according to news reports.

On Monday, many of the 10 million users of the zero-commission brokerage took to social media to complain about delays in getting trade confirmations for sell and cancel orders, Reuters reports. Main stock market indexes plunged 7% at the open that morning, which triggered an automatic 15-minute trading halt in U.S. markets, according to the newswire.

The firm said on its website that as of 10:25 a.m. Monday morning, trading was “functional for new orders with the exception of fractional equities,” according to the newswire. And buy and sell orders placed after the service was back online were being executed normally, a Robinhood spokeswoman tells Reuters.

Robinhood’s platform also had glitches last Monday and Tuesday. Those outages resulted in a class action lawsuit claiming $5 million in aggregate damages, filed last week in U.S. District Court, Middle District of Florida, Tampa Division.

In December 2019, Finra fined Robinhood over best execution violations and supervisory failures.

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By Alex Padalka
  • To read the Reuters article cited in this story, click here.
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