Massachusetts securities regulators reportedly plan to file a complaint against popular stock-trading app Robinhood. The complaint accuses the company of aggressively marketing to unexperienced investors and exposing investors to “unnecessary trading risks,” according to a report Wednesday from The Wall Street Journal, which reviewed a draft of the complaint.
Robinhood, which reportedly has more than 13 million customer accounts, has faced regulatory scrutiny before. The US Securities and Exchange Commission reportedly launched a probe into the company for not fully disclosing deals with high-speed traders, and last year Robinhood paid $1.25 million to settle claims from the Financial Industry Regulatory Authority for pricing violations.
Robinhood didn’t immediately respond to CNET’s request for comment, but reportedly told the Journal it works closely with regulators and is “committed to operating with integrity, transparency, and in compliance with all applicable laws.”
The Massachusetts Securities Division didn’t immediately respond to requests for comment.