Robinhood cannot block Massachusetts securities regulators’ case, judge rules

A Massachusetts judge on Thursday rejected Robinhood’s bid to block state regulators from moving forward with their enforcement action alleging that the online brokerage encourages inexperienced investors to place risky trades without limits.

Suffolk County Superior Court Judge Kenneth Salinger said Robinhood could continue challenging in court the validity of the state’s new fiduciary rule, which underlies Massachusetts Secretary of State Bill Galvin’s case against it.

But Salinger said it did not follow that he should in the interim block Galvin, who oversees the state’s securities…