Washington District Court has dismissed a lawsuit against Robinhood for 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.
Recall that the case, brought by plaintiffs Cooper Moore and Andrew Gillette, centers on messages Robinhood customers send to their friends as part of Robinhood’s refer-a-friend campaign. The plaintiffs in this lawsuit are unhappy that they never consented to receive such messages.
The plaintiffs allege that Robinhood materially aids and abets its users in sending illegal text messages, including:
- encouraging and incentivizing its users to send referral messages by compensating them with free inventory;
- technology that allows its users to initiate referral text messages through the Robinhood app.
- suggesting which contacts should receive referral text messages when the user uses the Contact Sharing method.
- composing the text messages;
- writing and providing unique user-specific referral links that a text recipient can use to subscribe to the Defendant’s services; and
- wording of text and images to be sent as part of refer-a-friend text messages.
In approving the settlement, the Judge noted that the terms of the Settlement Agreement are fair, reasonable and adequate in light of the complexity, expense and length of the litigation, as well as the risks involved in establishing liability and damages and maintaining class action through trial and appeal.
This lawsuit is a class action against Robinhood on behalf of 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 such text message was received between and including August 9, 2017 and February 13, 2024, the date the Court entered the preliminary injunction approval.
Individuals who have clearly and affirmatively consented in advance to receive Robinhood referral program text messages are excluded from the class.
The Settlement Class does not include the Defendant, any entity that has a controlling interest in the Defendant, and the present or former directors, officers, attorneys and their immediate families of the Defendant.
The Settlement Class also does not include individuals who have validly requested exclusion from it.
After considering Class Counsel’s request for fees and costs and other costs, the Court awarded $2,250,000 in reasonable attorneys’ fees and $142,407.76 in reasonable out-of-pocket expenses to be paid from the Settlement Fund.
Upon consideration of the service award application, Class Representative Cooper Moore is awarded the amount of $10,000.00 and Class Representative Andrew Gillette is awarded the amount of $10,000.00, to be paid out of the Settlement Fund, for service he has also provided 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.