4 ms·
In 2020 RH revenue (not profits) was $682M, so $70M fine is definitely not "minuscule".
by asteroidbelt 5y ago
In 2020 RH revenue (not profits) was $682M, so $70M fine is definitely not "minuscule".
- z3ncyberpunk 5y agoNope, still pretty paultry.
- beambot 5y agoGross profits, not net. Their net profit is probably negative, like most growth stage pre-IPO or recently-IPO tech companies. They were looking at IPOing at a $30B valuation. The fine is 0.2% of their anticipated market cap.
- asteroidbelt 5y ago0.2% of cap also looks significant for the first offense. What do you think would be an appropriate fine?
- beambot 5y agoThis isn't the first offense. They were fined $65M in Dec 2020 for similar infractions [1]. Clearly that wasn't enough to deter bad behavior. I'm a fan of exponential backoff. Pick an exponent. 3x-10x the last infraction seems reasonable (assuming similar levels of harm to users). [1] https://www.cbsnews.com/news/robinhood-sec-fine-65-million/ https://www.cbsnews.com/news/robinhood-sec-fine-65-million/
- asteroidbelt 5y ago3x exponential sounds right. Thank you for the context!