Following an investigation by seven state securities authorities on the company’s platform breakdowns in March 2020, which harmed “main street investors,” Robinhood will pay $10.2 million in fines.&nbsp; 
In a news statement, North American Securities Administrators Association President Andrew Hartnett stated that “Robinhood repeatedly failed to serve its clients, but this settlement makes clear that Robinhood must take its customer care obligations seriously and correct these deficiencies.”&nbsp; 
The agreement was reached following a NASAA investigation, which was overseen by state securities regulators from Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas.&nbsp; 
A request for comment from Robinhood did not immediately receive a response.&nbsp; When Robinhood’s platform encountered interruptions in March 2020 when hundreds of thousands of users were using the app to conduct trades, the company’s processes came under fire. Regulators claim that Robinhood’s inspection and approval procedure for options and margin accounts had “deficiencies” prior to March 2021. Due to flaws in Robinhood’s customer support and escalation procedures, some customers were unable to finalize trades even while some stock values fell. 
Robinhood is charged with “negligent dissemination of inaccurate information to customers” and failing to establish a customer identification scheme that is fairly designed.&nbsp; 
Additionally, according to the authorities, Robinhood neglected to disclose all consumer complaints to the Financial Industry Regulatory Authority and state regulators and failed to oversee technology that was essential to provide users fundamental broker-dealer services. 
The California Department of Financial Protection and Innovation claims that no admission nor denial of the charges has been made by Robinhood. The corporation “fully cooperated” with the inquiry, and according to the government, there was no indication of dishonest or fraudulent behavior.&nbsp; 
DFPI Commissioner Clothilde Hewlett stated that “platforms like Robinhood must comply with common-sense protections for investors and consumers as required by law.” 
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Robinhood Settles with State Securities Regulators for $10 million

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