LINCOLN, Neb. ---
The family of a novice stock trader and UNL Student who killed himself after mistakenly believing he lost more than $700,000 on Robinhood has settled with the trading app.
The company disclosed the settlement Thursday in its IPO filing.
The family of Alex Kearns accused the start-up in a February lawsuit of luring inexperienced investors to take big risks in sophisticated financial instruments without providing the necessary customer support and investment guidance.
Kearns was 20 when he took his life last year after he misunderstood a potential loss from a stock-option trade.
Robinhood executives have previously said they were “devastated” by the tragedy and pointed to efforts made to improve the platform’s options trading, educational efforts, and customer service.