In re Robinhood Cash Sweep Program Litigation

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IN RE ROBINHOOD CASH SWEEP Case No. 24-cv-07442-RFL

PROGRAM LITIGATION

ORDER GRANTING IN PART AND

DENYING IN PART MOTION TO

DISMISS

Re: Dkt. No.

Robinhood allows investors to trade stocks and other securities through its website and mobile app. Those customers may enroll in a program in which Robinhood will deposit their uninvested funds into bank accounts where those funds will earn interest. Robinhood pays its customers that interest, less a portion that it retains as a fee. Plaintiff Basudeb Dey commenced this action to recover for Robinhood’s alleged practice of keeping nearly all of the interest for itself and leaving just a minute fraction for its customers. Most of his claims were previously dismissed with leave to amend. (See Dkt. No. 48 (the “Prior Order”).) The case was then consolidated with a separate lawsuit filed by Plaintiff Sean Deeney, and Plaintiffs subsequently filed a consolidated complaint. (See Dkt. No. 70 (the “Operative Complaint”).) Robinhood now moves to dismiss. (See Dkt. No. 77 (the “Motion”).) For the reasons set forth below, the Motion is GRANTED IN PART and…