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Each FINRA arbitration case would be expected to cost the company up to 10,000 in fees. If anywhere near the 100,000 users who left negative reviews on the Goog
by kleton 6y ago
Each FINRA arbitration case would be expected to cost the company up to 10,000 in fees. If anywhere near the 100,000 users who left negative reviews on the Google Play store for the app file an arbitration and pay the filing fee, Robinhood will absolutely go bankrupt.
If you are/were a Robinhood user: https://www.finra.org/arbitration-mediation/initiate-arbitration-or-mediation https://www.finra.org/arbitration-mediation/initiate-arbitra...
- notyourwork 6y agoSubmitting a negative review is a lot less effort than dealing with a court case. I think it’s unlikely a small percentage of 100,000 will pursue.
- User23 6y agoYou’re talking about people who banded together to drive up share prices. They’ve already demonstrated an ability and willingness to coordinate.
- hutzlibu 6y agoBut they are probably still not the majority of its users. Anyway, Robinhood is likely dead in the long run.
- m463 6y agoBut remember the arbitration problem that doordash faced when a law firm created an easy-to-arbitrate system for workers? just do a web search for "arbitration backfired" you'll find this and other interesting cases :)
- katbyte 6y agoIf 1% do that’s 1,000,000...
- TylerE 6y agoThat’s a whole 6 hours of profit. They’re at almost $1 bill in annual revenue for 2020.
- o-__-o 6y ago>court case I thought it is arbitration (which is less effort than a court case)
- User23 6y agoAnd under California law consumers cannot be forced to bear those costs.
- Mountain_Skies 6y agoIIRC, customers still have to pay the filing fee, but beyond that, the costs are on the company.
- adolph 6y agoSome previous (flagged) discussion about the Patreon mass arbitration story. https://news.ycombinator.com/item?id=24016732 https://news.ycombinator.com/item?id=24016732
- malwarebytess 6y agoI think there's a very good chance the reviews were not organic, but instead automated.
- midasz 6y agoHighly doubt that, and wonder why you'd even think that - it's a pretty big movement with vocal users, submitting a review because you got scammed (which is what happened) is a very low threshold.
- toomuchtodo 6y agoYou can automate arbitration filings for users just as easily. Can’t wipe away 100k arbitration requests as easily as the same amount of negative reviews. I’d even contribute financially to have such an app built, because if FINRA and the SEC won't act (no surprise!), citizens can and should.
- mdoms 6y agoGot any evidence for that?
- alasdair_ 6y agoSome circumstantial evidence would be the apple app scores not having the same magnitude of response.
- mrep 6y agoI highly doubt that. I filed a 1 star review and it literally only took like 30 seconds as you don't have to write anything to rate it.
- btown 6y agoFor what it's worth, arbitration filing fees can be calculated at https://tools.finra.org/arbitration_calculator/ https://tools.finra.org/arbitration_calculator/ - they seem to start at $50 for specified damages, and $1575 for unspecified damages. (Obligatory: not a lawyer, not at all recommending that anyone do this without consulting one.)