Massachusetts court rejects Robinhood's challenge to state investment advice rule

BOSTON, Aug 25 (Reuters) - Massachusetts' top court on Friday handed state securities regulators a major victory in their enforcement action against online brokerage Robinhood by holding that a state fiduciary duty rule that is central to the case is valid.

The Massachusetts Supreme Judiciary Court reversed a lower-court judge's decision in favor of Robinhood in a lawsuit it filed after Massachusetts Secretary of State Bill Galvin in 2020 accused it of encouraging inexperienced investors to place risky trades. (Reporting by Nate Raymond in Boston)