09:01 AM EDT, 03/11/2025 (MT Newswires) -- (Updates with latest stock move in first paragraph and response from Robinhood in last paragraph.)

Robinhood Markets ( HOOD ) shares fell 20% on Monday after the Financial Industry Regulatory Authority said Friday the company has been ordered to pay $3.75 million in restitution to customers and $26 million in fines for violating numerous FINRA rules.

Robinhood has agreed to the settlement without admitting or denying the charges but agreed to remediatory measures, FINRA said.

According to the regulator, Robinhood Financial provided customers with inaccurate or incomplete information regarding its conversion of market orders into limit orders.

Additionally, Robinhood Financial and Robinhood Securities allegedly failed to establish and implement reasonable anti-money laundering programs and failed to detect, investigate, or report suspicious trades, the regulator said.

Robinhood Securities was accused of failing to reasonably supervise the clearing technology system used to clear trades for Robinhood Financial, resulting in "severe latency" in January 2021 during a surge in trading volume.

Robinhood Securities was also accused of a lack of proper oversight of social media communications by influencers promoting the firm and failed to comply with its reporting and auditing obligation, FINRA said.

Robinhood lawyer Erica Crosland said in a statement emailed to MT Newswires that the company was "pleased to resolve these historical matters, many of which date as far back as 2014, and which Robinhood Securities and Robinhood Financial have since remediated."