Robinhood reveals breakneck growth, legal pitfalls in IPO filing – Reuters

Robinhood reveals breakneck growth, legal pitfalls in IPO filing – Reuters

July 1 (Reuters) - Robinhood Markets Inc on Thursday set the stage for its hotly anticipated stock market launch, after settling legal fines it said were unlikely to be its last and revealing a massive surge in growth in its initial public offering filing.

The online brokerage, which was at the center of a confrontation between a new generation of retail investors grouping on social media and Wall Street hedge funds in late January, is aiming for an IPO valuation of over $40 billion, Reuters previously reported.

Menlo Park, California-based Robinhood, hit with a $70 million fine by regulators this week for systemic failures and providing false and misleading information, reported a 245% jump in revenue last year, according to the filing, as it fed on the surge in trading by ordinary Americans stuck at home. The filing also detailed a swathe of government probes.