Robinhood Markets, Inc. (NASDAQ:HOOD) shares are trading slightly higher in the premarket session on Tuesday.
The U.S. Securities and Exchange Commission (SEC) announced that Robinhood Securities LLC and Robinhood Financial LLC will pay a combined $45 million in civil penalties to settle a series of regulatory violations.
The charges stem from failures related to trading activity reporting, cybersecurity practices, recordkeeping, and customer communication.
The SEC’s investigation revealed multiple infractions.
From January 2020 to March 2022, Robinhood failed to promptly investigate suspicious transactions, leading to delays in filing suspicious activity reports. Additionally, from April 2019 to July 2022, the company did not implement adequate safeguards against identity theft.
A cybersecurity vulnerability between June and November 2021 also allowed unauthorized access to customer data, exposing the personal information of millions of customers.
In a statement to the New York Times, the company’s general counsel, Lucas Moskowitz, called the issues mostly past problems that have already been addressed.
He also …
Full story available on Benzinga.com