What is Rule 10b-5 and how does it apply to Robinhood?

Rule 10b-5 prohibits brokers from making false or misleading statements about securities. Class actions under 10b-5 face hurdles such as proving intent to deceive and classwide damages. In arbitration, panels may be more willing to consider 10b-5 arguments, and investors can also bring claims for negligence, misrepresentation, and failure to supervise.