Robinhood Settles Lawsuit Filed by Family of 20-Year-Old Man Who Committed Suicide After Trading App Mistakenly Showed He Had a Negative Balance of $730,000


The trading platform Robinhood has settled a wrongful death lawsuit filed by the family of a man who suicided after the app mistakenly showed that he had a negative balance of $730,000. Alex Kearns, 20, wasn’t able to get in contact with Robinhood to resolve the matter and took his own life in June 2020. His family accused the startup of not providing inexperienced investors with guidance or customer support, resulting in them taking big financial risks. Their suit sued for wrongful death, negligent infliction of emotional stress, and unfair business practices. According to court filings, the settlement was reached in late May with the case dismissed on June 21. The terms of the agreement were not disclosed.

In a previous statement, Robinhood executives said they were “devastated” by the tragedy and moved to educate users on the platform and offer better customer service.

If you or a loved one are struggling with suicidal thoughts, please reach out to the National Suicide Prevention Lifeline at 1-800-273-TALK (8255), or contact the Crisis Text Line by texting TALK to 741741

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SOURCE: The Daily Beast – Cheyenne Ubiera