Robinhood settles lawsuit over 20-year-old dealer who died by suicide
The family of Alex Kearns, a college student who traded options on Robinhood, accused the startup in a February lawsuit of luring inexperienced investors to take big risks in sophisticated financial instruments without providing the necessary customer support and investment guidance.
Kearns took his own life in June 2020 after mistakenly believing he owed $730,000 and his desperate attempts to get in touch with Robinhood went unanswered, according to his family. The lawsuit accused Robinhood of wrongful death, negligent infliction of emotional stress and unfair business practices.
“This matter was dismissed with prejudice following a settlement between the parties,” Robinhood said in its S-1 filing for its initial public offering.
Court filings indicate the settlement was reached in late May and the case was permanently dismissed on June 21.
Robinhood executives have previously said they were “devastated” by the tragedy and pointed to efforts made to improve the platform’s options…
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