Robinhood Shares Dip on Regulatory Action from SEC, Potential Charges Loom

Benzinga
Benzinga
  • 15 days ago
Robinhood disclosed in a filing that the SEC sent it a "Wells Notice" indicating the regulator may charge the company after completing an investigation. The potential SEC action could involve a civil lawsuit, public administrative proceeding, or cease-and-desist order seeking remedies like fines, orders to stop certain activities, or returning illegal profits. The SEC found preliminary reason to believe Robinhood violated securities laws related to broker registration and oversight of transfer agents. Robinhood shares fell 2% on the news, and the company is scheduled to report quarterly earnings on Wednesday.

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