Jul 2, 2021
Popular financial services company, Robinhood, has settled a wrongful death lawsuit filed by the surviving family of a 20-year-old trader who died by suicide.
Alex Kearns, a college student who traded options on the Robinhood online platform, reportedly saw a negative $730,000 account balance in June of last year. Despite making several desperate attempts to get in touch with Robinhood customer service representatives, Kerns was unable to reach anyone and was therefore under the mistaken impression that he actually owed the $730,000 amount.
Tragically, Kearns died by suicide in June 2020. His family filed a wrongful death lawsuit against Robinhood in February, citing negligent infliction of emotional distress and unfair business practices.
Additionally, the wrongful death complaint filed by Kearns’ surviving family members accused the financial startup of luring inexperienced investors to take big risks in sophisticated financial instruments without providing the necessary customer support and investment guidance.
Court filings indicate a settlement was reached between Robinhood and the Kearns family in late May, with the case being permanently dismissed as a result on June 21.
Robinhood filed paperwork for its much-anticipated initial public offering (IPO) earlier this week. The company plans to list its shares on the Nasdaq stock exchange under the symbol HOOD. Robinhood mentioned the wrongful death lawsuit in its IPO filing.
“This matter was dismissed with prejudice following a settlement between the parties,” the company said in its S-1 filing paperwork.
The wrongful death settlement comes on the heels of Robinhood incurring the largest-ever penalty imposed by Wall Street’s self-regulator.
On Wednesday, Robinhood was ordered to pay approximately $70 million for harming millions of customers. The trading app was accused by the Financial Industrial Regulatory Authority of “systemic supervisory failures” and hurting investors by giving them “false or misleading information.”
Upon news of the death of Alex Kearns, Robinhood executives reportedly said they were “devastated” by the tragedy. Subsequent to Kearns’ suicide, the company pointed to efforts made to improve the platform’s options trading, educational efforts, and availability of customer service representatives.
A wrongful death lawsuit is intended to help surviving family members recover financial compensation after the death of a loved one due to negligence or harm. Wrongful death lawsuits can be filed for various circumstances, including:
Some well-known wrongful death lawsuits include:
In a wrongful death case, surviving family members can collect various types of economic and non-economic damages.
Common examples of economic damages available in wrongful death lawsuits include:
Common examples of non-economic damages available in wrongful death lawsuits include:
The untimely death of a loved one due to someone’s negligence or harm can be a devastating tragedy that turns a family’s world upside down. Eligible dependents such as spouses, children, and anyone with a legal interest in the decedent’s property should be selective when searching for a wrongful death lawyer, ensuring your important case is only in the very best hands.
You and your family deserve a firm with experience and proven results that will help you win your claim and recover maximum financial compensation, allowing you to move forward after such an unfortunate tragedy. You deserve the team of experienced and dedicated wrongful death attorneys at Dordulian Law Group (DLG).
Led by former Deputy District Attorney for Los Angeles County, Sam Dordulian, DLG provides surviving family members pursuing wrongful death claims with personalized and professional legal representation that prioritizes your needs and well-being.
When you’re ready to pursue justice after the death of a loved one, we’re ready to fight aggressively on your behalf to ensure that justice is obtained in the form of a maximum financial damages award.
With a 98% success record and over $100,000,000 recovered in settlements and verdicts, DLG is the absolute best firm in the Los Angeles, California-area to handle your wrongful death lawsuit.
Contact us today online or by phone at 818-322-4056 to learn more about how we can help you secure the justice you deserve after a tragic wrongful death. We’re available 24/7 to listen to the facts of your case. Once your claim is established, we’ll launch a thorough investigation (led by a retired LAPD detective with over 30 years of experience) and then proceed with developing a precise legal strategy based on our decades of experience and proven results that helps you secure the justice you deserve.
For the peace of mind you require when pursuing a wrongful death lawsuit, contact the experts at DLG who can provide the experience, professionalism, and advantages you need to win.
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