The judge approved Robinhood's settlement agreement of $9 million in the "Refer a Friend" lawsuit

ChainCatcher News, a U.S. federal judge has approved a $9 million settlement agreement in a class action lawsuit against the cryptocurrency and stock trading platform Robinhood.

Robinhood Financial LLC has been ordered to pay $9 million to resolve a lawsuit regarding its "Refer a Friend" program, which allows users to generate and send text messages to their phone contacts through the trading app, inviting them to join the platform.

According to the 2021 lawsuit, this action violated Washington state's Commercial Electronic Mail Act and Consumer Protection Act.