Massachusetts Supreme Court Delivers Major Win for Main Street Investors in Robinhood Case
The Massachusetts Supreme Judicial Court has upheld the state's fiduciary duty rule, which requires brokers to act in the best interests of their clients. The court's decision reverses a lower-court ruling that struck down the rule and holds Robinhood accountable for violating it. Better Markets, a non-profit organization advocating for investor protection, filed an amicus brief in support of the rule. The court rejected claims that the rule exceeded the Secretary's authority and found that it is not preempted by the SEC's "best interest" rule. This victory is seen as a significant win for Main Street investors and highlights the need for stronger investor protections nationwide.