STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBOSTON - Massachusetts' top court on Friday handed state securities regulators a major victory in their enforcement action against online brokerage Robinhood by holding that a state fiduciary duty rule that is central to the case is valid.
That case has been on hold while Galvin appealed a judge's March 2022 ruling invalidating a rule stating that broker-dealers have a fiduciary obligation to provide investment advice without regard to the interests of anyone but their customers. Galvin alleged that the Menlo Park, California-based company used strategies that treated trading like a game to lure young, inexperienced customers and encourage them to engage in risky trading through its online platform, including by having confetti rain down on the user's screen for each trade made on its app.
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